Tax Tip - First Time Homebuyer Credit

[danakiess]

Did you know.........

 

The First-Time Home buyer Credit of 2008 and 2009 has been expanded and extended.

In 2008 the credit was up to $ 7,500 and was in essence a no-interest loan to be repaid in 15 years. Then in 2009 the credit increased to $ 8,000 and truly became a credit instead of a loan that has to be repaid.

 

This credit up to $8000 was originally set for homes purchased before December 1, 2009 but has been extended to homes that go under contract no later than May 1, 2010 and close before July 1, 2010.

 

For home purchased in 2009 and 2010 this credit does not have to be repaid unless the home ceases to be the main residence within three years of the purchase date.

 

This credit can be claimed on the 2009 tax return that is due April 15, 2010 or an amended 2008 tax return.

 

For more information on how you can take advantage of this credit you can visit www.irs.gov or give me a call.

Sincerely.

Dana Kiess

Accountant

 

Kiess Accounting & Tax LLC.

T (770) 789-1256

F (770) 872-0549

kiessaccounting@bellsouth.net

[Cathyhelms]

Did you know.........

 

The First-Time Home buyer Credit of 2008 and 2009 has been expanded and extended.

In 2008 the credit was up to $ 7,500 and was in essence a no-interest loan to be repaid in 15 years. Then in 2009 the credit increased to $ 8,000 and truly became a credit instead of a loan that has to be repaid.

 

This credit up to $8000 was originally set for homes purchased before December 1, 2009 but has been extended to homes that go under contract no later than May 1, 2010 and close before July 1, 2010.

 

For home purchased in 2009 and 2010 this credit does not have to be repaid unless the home ceases to be the main residence within three years of the purchase date.

 

This credit can be claimed on the 2009 tax return that is due April 15, 2010 or an amended 2008 tax return.

 

For more information on how you can take advantage of this credit you can visit www.irs.gov or give me a call.

Sincerely.

Dana Kiess

Accountant

 

Kiess Accounting & Tax LLC.

T (770) 789-1256

F (770) 872-0549

kiessaccounting@bellsouth.net

 

Claimed on your 2009 return if a home was purchased in 2009? If it's purchased in 2010, it will be need to be claimed in 2010 or can it also be claimed in 2009?? Just need clarification.

[danakiess]

If it was purchased in 2009 it can be claimed on the 2009 return or the 2008 amended return.

 

If it was purchased in 2010 it can be claimed on the 2009 return or 2010 return.

 

I hope this clarifies the information provided.

 

Thanks,

 

Dana

 

(I have attached a flyer from the IRS on this subject)

First time home buyer Flyer.pdf

[amanda_rip]

Yep. We have to pay back our 'tax credit' bc we bought our home in 2008.

 

Had we bought our home 4 months later, we would have gotten $500 more and wouldn't have to pay it back.

 

 

Makes me angry!

[danakiess]

I would be angry too. That original credit (or loan) just doesn't compare to the credit now available.