Posted by Randy Chavers on Wed, Jan 06, 2010 @ 07:36 AM
Signed into law on November 6,2009, the new Act extends and
expands the first-time homebuyer credit allowed by previous Acts including
these provisions;
You have an extra
year to buy a home-until April 30, 2011
"Members of the military and certain other federal employees
serving outside the U.S. have an extra year to buy a principal residence in the
U.S. and qualify for the credit. Thus, an eligible taxpayer must buy,
or enter into a binding contract to buy, a principal residence on or
before April 30, 2011. If a binding contract is entered into by that date, the
taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services,
members of the Foreign Service and employees of the intelligence community are
eligible for this special rule. It applies to any individual (and, if married,
the individual's spouse) who serves on qualified official extended duty service
outside of the United States for at least 90 days during the period beginning
after Dec. 31, 2008, and ending before May 1, 2010."
3 Year Principal
Residence Requirement Can Be Waived
Buyers
using the tax credit do NOT have to pay any portion back unless the home
ceases to be the
taxpayer's main residence within a three-year period following the purchase,
but there are exceptions for
military and some Federal employees. According to the IRS;
"In many cases, the credit repayment (recapture) requirement
is waived for members of the uniformed services, members of the Foreign Service
and employees of the intelligence community. This relief applies where a home
is sold or stops being the taxpayer's principal residence after Dec. 31, 2008,
in connection with government orders received by the individual (or the
individual's spouse) for qualified official extended duty service. The credit
is still allowable even if this happens during the year of purchase. Qualified
official extended duty is any period of extended duty while serving at a place
of duty at least 50 miles away from the taxpayer's principal residence (whether
inside or outside the U.S.) or while residing under government orders in
government quarters. Extended duty is defined as any period of duty pursuant to
a call or order to such duty for a period in excess of 90 days or for an
indefinite period."
For
more details on this program, including links to IRS Tax Credit information,
instructional videos and other valuable resources, please visit the Real Estate
of Atlanta 2010 Tax Credit Guide or email us at TaxCreditGuide@RealEstateOfAtlanta.com.
Posted by Randy Chavers on Tue, Jan 05, 2010 @ 03:55 PM
Thousands of Atlanta homes are bargain priced, interest
rates are at historic lows and you can get up to $8,000 of your hard-earned
tax dollars back if you haven't owned a home in the past 3 years. It's a great
combination, but you will want to know the answers to the following questions;
-
What's the time limit? You must sign a purchase
contract no later than April 30, 2010 and close before July 1.
-
Who is considered a first time homebuyer? You
are... if neither you nor your spouse has owned a primary residence in the U.S.
within the last 3 years.
-
How much income do I need? There is NO minimum
income for claiming the tax credit. If you don't owe any taxes, you can receive
the money in cash. Seriously!
-
When do I get the tax credit? You can claim the credit
when you file your 2009 or 2010 tax return. There are also programs that will
advance the money to help on your down payment. Click here for information on Tax
Credit Advance programs.
-
Do I ever have to pay the money back? This is
money that never has to be repaid, provided you live in the home for 3 years.
-
Can I buy a house for $900,000? No. The program
caps the home price at $800,000. Any amount over the cap makes the home
ineligible for the tax credit.
- View the video below for a summary;