Site Powered By Lone Wolf Real Estate Technologies v2010.0.1.30
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Dates applicable |
4-9-08 thru 12-31-08 |
1-1-09 thru 11-06-09 |
11-7-09 to 4-30-10 |
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Maximum credit amount |
$7,500 ($3,750 MFS) |
$8,000 ($4,000 MFS) |
$8,000 ($4,000 MFS) |
|
Maximum home price |
NA |
NA |
$800,000 |
|
Recapture |
Credit is paid back ratably over 15 years unless house is sold or ceases to be a personal residence during the recapture period |
No pay back required unless house ceases to be a personal residence in 36 months |
No pay back required unless house ceases to be a personal residence in 36 months |
|
AGI phase out |
$75,000 to $95,000 ($150,000 to $170,000 MFJ) |
$75,000 to $95,000 ($150,000 to $170,000 MFJ) |
$125,000 to $145,000 ($225,000 to $245,000 MFJ) |
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First time homebuyer |
No ownership in a US personal residence during 3 year period prior to purchase of house |
Same |
Same |
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Long time resident |
NA |
NA |
Prior home used consecutive 5 of 8 years. $6,500 max credit ($3,250 MFS) |
MFS: Married filing separately. MFJ: Married filing jointly
This credit is a great incentive to buy a home in 2010, but the home must be under contract by April 30th, 2010 and close before July 1st, 2010. Contact your qualified Trails West Real Estate Agent to find out more about this credit and see if you may be eligible.
If you have already purchased your home and you are intending to file for the tax credit you have a couple options. You can amend your prior year tax return or you can claim the credit on the return for the year of purchase. In order to verify a taxpayer’s eligibility for the first time homebuyer credit on an amended return, the IRS is requiring taxpayers to provide documentation, in addition to Form 1040X and Form 5405, which includes the property address, the purchase price, the purchase date, the name of the seller and the name of the buyer. Trails West can assist you in producing a form with this information if you had a Trails West agent assisting you as a buyer’s representative.
As with any legal or tax matters, we strongly encourage you to seek appropriate professional advice. While Trails West Realtors may be able to answer some basic questions about the tax credit, we recommend you meet with a Certified Public Accountant.