At Last - The IRS Rules for the $6500 TAx Credit
January 25, 2010
The federal government, when the $8000 first time home buyer tax credit was extended to April 30 2010, added a $6500 tax credit for "long time residents of the same main home" .
Here are documents that need to be attached to your 2009 or 2010 tax returns.
1. A copy of the HUD-1 statement sheet, including contract sales price and date of closing.
2. Evidence of long-term ownership and occupancy of the previous home to meet the five consecutive years' test. (this can be property tax records, homeowner's insurance records or IRS form 1098interest statements for the five year period.
3. For buyers claiming a credit on a newly constructed home, where a HUD-1 settlement sheet is not available, the IRS will accept a copy of a certificate of occupancy showing the buyers' names, the property address and the date.
4. For buyers of mobile homes who are not able to get settlement statements, the IRS will accept a copy of the executed retail sales contract showing the property's address, purchase price and date of purchase.
The new IRS guidance also spells out the revised income limits for home buyers claiming credits. Your modified adjusted gross income must be $125,000 or less if you are single or $225,000 or less if you are married filing jointly. Above these limits some credit may be available in a phase down of the amount until a single income is $145,000 or #245,000 for married filing jointly.
Another stipulation in the IRS rules is that if you sell the home for which you received a tax credit within 36 months after the date of purchase, you may have to repay the government. This repayment is also due if you convert your principal residence to a rental or if the lender forecloses.
With the rules now spelled out, potential tax credit seekers should speed up their search for a replacement home. In 14 more weeks these credits will disappear.
The federal government, when the $8000 first time home buyer tax credit was extended to April 30 2010, added a $6500 tax credit for "long time residents of the same main home" .
Here are documents that need to be attached to your 2009 or 2010 tax returns.
1. A copy of the HUD-1 statement sheet, including contract sales price and date of closing.
2. Evidence of long-term ownership and occupancy of the previous home to meet the five consecutive years' test. (this can be property tax records, homeowner's insurance records or IRS form 1098interest statements for the five year period.
3. For buyers claiming a credit on a newly constructed home, where a HUD-1 settlement sheet is not available, the IRS will accept a copy of a certificate of occupancy showing the buyers' names, the property address and the date.
4. For buyers of mobile homes who are not able to get settlement statements, the IRS will accept a copy of the executed retail sales contract showing the property's address, purchase price and date of purchase.
The new IRS guidance also spells out the revised income limits for home buyers claiming credits. Your modified adjusted gross income must be $125,000 or less if you are single or $225,000 or less if you are married filing jointly. Above these limits some credit may be available in a phase down of the amount until a single income is $145,000 or #245,000 for married filing jointly.
Another stipulation in the IRS rules is that if you sell the home for which you received a tax credit within 36 months after the date of purchase, you may have to repay the government. This repayment is also due if you convert your principal residence to a rental or if the lender forecloses.
With the rules now spelled out, potential tax credit seekers should speed up their search for a replacement home. In 14 more weeks these credits will disappear.
posted by shirley harry at 8:12 AM
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