The Homebuyer Tax Credit is a big part of our market. The deadline to place a property under contract is April 30th and as of today buyers who want to take advantage of this unprecedented opportunity have just 50 days to get it done. There are many sources of information out there on this opportunity but I have found that the best source of information comes directly from the source, the IRS.
The first logical question anyone can ask about the tax credit is ”Am I eligible?”. To find out go to http://www.irs.gov/newsroom/article/0,,id=206291,00.html
I get many questions that are a bit out-of-the-box. What if one spouse qualifies and the other doesn’t? Am I still eligible if I get a co-signer who does not qualify? What if I got a divorce and lost the house in the settlement? Answers to these types of questions can be found at http://www.irs.gov/newsroom/article/0,,id=206294,00.html
Now the fun part. If you do in fact qualify and you have closed on a home within the specified time frame your tax credit is just a step away. If you purchased a home in 2009 you can claim the tax credit on your 2009 tax return. But did you know that you can claim a property purchased in 2010 on your 2009 taxes? Claiming the tax credit seems pretty straight forward. You attach form 5405 to a long form 1040 and include documentation regarding the sale. To see a full explanation on the process go to http://www.irs.gov/newsroom/article/0,,id=218698,00.html