Wells Income Tax
Online Income Tax Preparation Specialist
305-654-9020
Online Income Tax Preparation Specialist
305-654-9020
Online Income Tax Preparation With Free Electronic Filing
New Homebuyers' Credit
The Worker, Homeownership and Business Assistance Act of 2009 was signed into law on November 6, 2009. What it did was extend and expand the first-time homebuyers credit from the previous Acts.
Under the new law an eligible taxpayer must buy or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and also close on the home by June 30, 2010. The taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
The new expansion to the Act allow long-time homeowners who buy a replacement principal residence to also claim a homebuyer credit of up to $6,500. They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
Several new restriction apply to homes purchased after Nov. 6, 2009
Purchaser must attach a properly executed settlement statement to their return.
No credit is available if the purchase price of the home exceeds $800,000.
The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
A dependent is not eligible for the credit.
The new law gives the IRS broader authority to deny first-time homebuyer credit claims, without having to first audit a taxpayer's return.
The Worker, Homeownership and Business Assistance Act of 2009 was signed into law on November 6, 2009. What it did was extend and expand the first-time homebuyers credit from the previous Acts.
Under the new law an eligible taxpayer must buy or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and also close on the home by June 30, 2010. The taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
The new expansion to the Act allow long-time homeowners who buy a replacement principal residence to also claim a homebuyer credit of up to $6,500. They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
Several new restriction apply to homes purchased after Nov. 6, 2009
Purchaser must attach a properly executed settlement statement to their return.
No credit is available if the purchase price of the home exceeds $800,000.
The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
A dependent is not eligible for the credit.
The new law gives the IRS broader authority to deny first-time homebuyer credit claims, without having to first audit a taxpayer's return.