How To Get The First Time Home Buyer Tax Credit
According to irs.org (http://www.irs.gov/newsroom/article/0,,id=204671,00.html ) the following is how “purchasers” may qualify and apply their tax 2009 credit. First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2009. The credit:
1. Applies to home purchases that close before December 1, 2009.
2. Applies only to homes used as a taxpayer’s principal residence and that the taxpayer own the home 36 months or more.
3. Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.
4. Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if the owe no tax or the credit is more than the tax owed.
5. First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010.
Many think that this has “sparked” the recent uptick in the number of homes sold, and I am one of them. However, unless Congress extends this type of stipend into 2010 and/or 2011 one may question what will “activate” the home sale numbers after December 1, 2009. I for one, although in the profession, believe that we all should contact our representatives at state and national levels to tell them what we, you or I, may think about this idea. Whether for or against a “tax credit” you deserve to be heard.
2008 had a tax credit, 2009 has a tax credit, what makes Congress think that “housing” has recovered? What do you think?