For many of us, owning a home is an important step in achieving the American Dream. Although it may seem a little daunting in today‟s market, there are opportunities for first time home buyers and those that already own a home but want to purchase another. The Federal Government passed legislation in November that expands the home owner‟s tax credit program. It‟s called the “The Worker, Homeownership and Business Assistance Act of 2009”.
We have compiled some general information about the program and what it can do for you. This is the latest information received from a variety of resources such as the National Association of Realtors and www.federalhousingtaxcredit.com , as of November 2009. This information is not intended to be tax or legal advice. It is for informational purposes. As with all tax issues, be sure to consult with a tax professional before finalizing any decisions.
* How do I know if I’m eligible?
You are eligible for the tax credit benefit if you are a first time home buyer. The tax credit is also available to a specific type of current homeowners. You are a first time home buyer if you have not owned a principal residence within the last three years. In order to qualify as a specific (current) homeowner, you must have had to live and owned your primary residence for the last five years. As for a married tax paying couple the eligibility requirement is a little different. One example would be that if you have never owned a home within the last three years but your spouse has, than neither of you would qualify for the credit. Other criteria are also applicable, and there are exemptions under those circumstances, but you should consult a tax expert/advisor.
*When do I have to purchase the home?
If you‟ve purchased a home after November 7, 2009 and before May 1, 2010 then the home is eligible for the tax credit. You can claim the credit on either your individual or joint tax return if you purchase a single family home between November 7, 2009 and April 30, 2010. You can also claim the credit if you are in a contract on a home and close escrow by July 1, 2010.