Home Buyers in San Diego, Collect your Tax Credit before it's Gone

Home Buyers in San Diego, Collect your Tax Credit before it's Gone

Tax Credit Amount?

First Time Home Buyers in San Diego can qualify for a tax credit up to $8,000. Also, those who have owned & occupied a primary residence for at least 5 consecutive years during the last 8 will qualify for a tax credit up to $6,500.

Deadlines
Purchase contracts to buy a home need to be in effect by April 30, 2010 and close by June 30, 2010.

Income Limitations

The maximum income to qualify is: Single filers earning up to $125,000 are eligible for the total home buyer tax credit. Those earning more than this can receive a partial credit. Single filers earning more than $145,000 are not eligible.

Joint filers earning up to $225,000 are eligible for the total home buyer tax credit. Those earning more than this can receive a partial credit. Joint filers earning more than $245,000 are not eligible.

Maximum Purchase Price
$800,000.

What is a tax credit?
A tax credit for home buyers is a direct reduction in tax liability owed to the IRS. If no taxes are owed, the IRS will issue a check for the amount of the tax credit (refund). This credit does not require repayment, unless, the home is no longer the primary residence within the first 3 years.

Eligibility for the first-time home buyer tax credit?
An eligible homebuyer may request a tax credit up to $8,000 or 10% of the purchase price. If the amount of the home purchased is $75,000, the maximum credit is $7,500.

Singles -- Anyone who has not owned a primary residence in the previous 36 months.

Married couples -- Any couple who has not owned a primary residence in the previous 36 months is eligible. However, if either spouse has owned a primary residence in the last 36 months, neither would qualify.

How to claim the home buyer tax credit?
To take advantage of the tax credit in 2009, apply with your 2009 tax return. You may also file an amended tax return with Form 5405. (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Per the IRS, the following are NOT eligible for the home buyer tax credit

You buy your home from a direct blood relative. Ex: spouse, parent, grand-parent/child, or child.

You do not use the home as your principal residence.

You sell your home before the end of the year.

You are a nonresident alien.

Can parent(s) who wont live in the property cosign on the loan for their child, and the child still be eligible for the tax credit as a first time home buyer?
Yes.

Speak with your professional tax preparer regarding this home buyer tax credit.