10 Things You Need to Know About the Home Buyer Tax Credit – San Clemente Homes

On November 6, 2009 changes were made to the Homebuyer Tax Credit. The good news is, you still have time to take advantage of it! Here is how.

• You must have bought or be under contract to buy your new home by April 30, 2010
• If you’re under contract, you have to close escrow by June 30, 2010
• If your purchase qualifies, you can choose to claim the credit on either your 2009 or 2010 tax return
• Income limits have been increased under the new law as of November 7, 2009 – $125,00 or $225,000 for joint filers. Based on modified adjusted gross income.
• The purchase price of the home must be less than $800,000
• The amount of the tax credit is 10% of the purchase price of the home UP TO $8000
• The purchaser must be at least 18 years old at the time of purchase
• If you buy your home after November 6, 2009 you must use the NEW version of IRS form 5405 http://www.irs.gov/pub/irs-pdf/f5405.pdf
• Dependents are not eligible to claim the credit
• You must file a paper tax return if you are claiming the credit

If you’re ready to begin your search for your new home, or simply have questions call Adrienne at 714-396-2819

This information was adapted from the IRS web site at http://www.irs.gov/newsroom/article/0,,id=215827,00.html?portlet=7