The IRS is just starting to distribute information about the extended First Time Home Buyers Tax Credit and the Existing Homeowner Tax Credit... it seems like the best advice for now is to wait a few weeks to send in your tax credit request if you do qualify. Many people in the Albuquerque and Rio Rancho area are wondering if they qualify for the tax credit if they buy a home. For Sellers, it can mean a great time to sell your home as we're seeing quite a few buyers looking for homes to take advantage of these credits.
Later this month the IRS will publish its revised Form 5405 with the key instructions needed to get your check from the government. Many of the questions we regularly get involve who qualifies, and how does it work if a parent or someone else co-signs on the loan. These should be answered in this publication as well as info on the expanded income limits, the cap on home prices, and additional documentation requirements and prohibitions against claims by dependents.
The legislation known as the Worker, Homeownership and Business Assistance Act of 2009, extends the $8,000 first-time home buyer credit until April 30 for signed contracts and June 30 for them to close. The law also created a new tax credit for people currently own a home... a principal residence for a consecutive five of the previous eight years, and who purchase a replacement principal residence with a signed contract no later than April 30, followed by a closing no later than June 30, 2010.
Qualified repeat buyers can obtain credits up to $6,500. For both the first-time and repeat buyer program, the credit is equal to 10% of the purchase price of the house, up to a maximum of either $6,500 or $8,000.
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Labels: Albuquerque Home For Sale, Albuquerque NM Real Estate, Home Buying, Sell Your Home
