I wanted to give you some more info on the Tax Credit. The info is from the IRS 5405 form (attached below).
So now we have more info on what qualifies & what some differences are between the 2008 Credit Versus the 2009 Credit.
Here are some facts about the 09 Credit (references from IRS 5405 form):
1. First Time Homeowner is still 3 years. It also states if you are MARRIED THAT YOU & YOUR SPOUSE cannot own a home in the past 3 years!!!!!
2. Must live in it.
3. $75,000 individual/$150,000 married income limits for full $8000. Can get partial credit if income is sub $95,000 individual/$170,000 married.
4. Bond Loans are able to get credit now ($7500 did not allow it)
5. Nonresident Alien will not receive credit.
6. Acquired home by gift or inheritance does not qualify
7. Acquired home from a related person does not qualify.
Related person is defined as:
a. spouse, parents, grand parents, children, & grandchildren.
b. own 50% or more of outstanding stock w/ another person.
c. have a partnership business in which you directly or indirectly own 50% of capital interestor profit interests.
8. Credit is $8000 if closed post 1/1/09. Credit is $4000 if married but file separately. Credit max is 10% of purchase price up to $8000. See IRS rules on Modified Adjusted Gross Income.
9. No repayment if:
a. live in home 36 months
b. also please refer to specific info on page 2 of IRS form (Homes purchase in 2009 section) on other situations on no repayment
10. Exceptions to repayment rule (pre 36 mo's):
a. if you sale home to someone you are not related to, the penalty is will be the gain on the sale up to $8000.
b. if home is destroyed, condemned, etc. & you get another home w/in 2 years no repayment.
c. in a divorce, the spouse who receives the home will be responsible for the repayment.
d. if you die repayment is not required. if you have a spouse they will have to repay half of their credit.
11. Form requires date you acquired the home. So must have property prior to getting credit. 12. You can close in 2009 & modify 2008 taxes so you get $$ in 2008.
Again, please note we are NOT a Tax Advisor. Above we itemized some bullet points. So any questions on the Tax Credit Info above HAS to be referred to a licensed CPA or IRS. I am sure more questions/answers will arise from the IRS . As we hear them, we will forward that info as it's received.
Below I have also cut & pasted a article from the IRS on the 2009 Tax Credit.
Expanded Tax Break Available for 2009 First-Time Homeowners
IR-2009-14, Feb. 25, 2009
WASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.
“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”
The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.
This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.
The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.
IR-2009-14, Feb. 25, 2009
WASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.
“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”
The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.
This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.
The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.
Stay Informed! Subscribe!
Free No-Obligation Consultations Available Anytime!
Call, Text or E-mail us at:
Tony Wilson (317)354-7410 tonywilson@callcarpenter.com
Valerie Wilson (317)441-3921 vwilson@callcarpenter.com
or visit www.WilsonRealtors.Net
Thinking about selling and not sure if the time is right?
Visit www.WilsonWorksForYou.com to see what we can do for you!
Posts
No comments:
Post a Comment