Real Estate Tax Planning

If you’re thinking of buying your first home, you may have heard some buzz about the First-Time Homebuyer Tax Credit. If you have never bought a home before, you may qualify for up to $8,000 in tax credit if you purchase(d) your home between April 8, 2008 and May 1, 2010. Here are 10 things you absolutely must know about the tax credit.

1. If you sell your home within three years of purchase, you must repay the tax credit.
2. If you are already an existing homeowner, you can qualify for up to $6,500 in tax credit if you have lived in your current residence for five years or more and are buying a replacement home.
3. Even if you buy your home in early 2010, you can claim your credit on your 2009 taxes.
4. You must prove that you are 18 years old or older to get the credit (believe it or not, there have been some cases of fraud and abuse of this policy).
5. The tax credit is equal to 10% of the purchase price, up to $8,000.
6. If your closing takes place after the May 1, 2010 deadline, you have until July 1 to close and take advantage of the tax credit.
7. If you purchase a mobile home and it is your primary residence, you qualify for the credit.
8. If you have owned a house outside the U.S. in the past 3 years, you can still qualify for the credit on your first purchase of a U.S. home.
9. If you purchase a home from a relative, you are not qualified for this tax credit.

10. Nonresident aliens do not qualify for the tax credit.

On November 6, 2009, the tax credit program was updated to have a later deadline (prior, you had to purchase the home by December 31, 2009) and to include long-term homeowners as eligible. For the latest updates on the First-Time Homebuyers Tax Credit program, visit the IRS’s website.

About the Author:

Clay Mason is the owner of Superior Notary Services, a mobile notary company that offers “one stop” access to a nationwide network of qualified closers (over 30,000 mobile notaries and attorneys). The company assists customers in getting important documents, including real estate documents, wills, and child custody agreements notarized quickly from the convenience of their home or office. For more information visit http://www.superiornotaryservices.com

Article Source: ArticlesBase.com – 10 Things You Must Know About the First-Time Homebuyer Tax Credit

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