The President recently signed into law the Homebuyer Assistance and Improvement Act of 2010, which extends the closing deadline for the Homebuyer Tax Credit to September 30, 2010. The extension comes in response to concern from buyers worried about filing closing paperwork by the prior July 2 deadline. As guidance from the IRS states, homebuyers still must have entered into a binding contract to purchase a home before May 1, 2010.
In addition to Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, homebuyers claiming the credit must provide the following documentation:
As 2009 closes in just a few days, there are some important tax changes that will help you save money and prepare to file your 2009 tax return in the spring. We have summarized many of the major changes in our blog post, “Tax Planning Strategies & Year-End Considerations” in November, and since it has been one of our most popular posts, we’ve reposted it here and encourage you to review this information again before starting the process for your 2009 tax return.
As the end of the year approaches, the IRS reminds taxpayers that taking the time to organize your financial records now will make filing in a few months a much smoother process.
Winter is generally a slow season for Real Estate sales, but analysts are predicting a warmer season in 2009. The Wall Street Journal reports how extending the Homebuyer Tax Credit will likely spur buying in what is traditionally the down season, and how homebuyers can take full advantage.
“We’re going to see far more interest in the fourth quarter than we generally do because of the tax credit,” says Heather Fernandez, vice president of Trulia.com, a real-estate search engine. Traffic surged on the site on Nov. 5, the day Congress approved the credit extension, she says.
The new law extends the expiration date of the first-time homebuyer credit from November 30, 2009 to April 30, 2010. If a first-time homebuyer enters into a binding contract before May 1, 2010 to purchase a principal residence and the sale closes before July 1, 2010, then the homebuyer will be eligible for a maximum credit of $8,000. In this context, a first-time homebuyer is an individual (and, if married, the individual’s spouse) who has not owned a principal residence during the last three years prior to purchasing the home that qualifies for the credit.
As the end of the year approaches, now is the time to evaluate your business and your personal tax strategies. By taking the time to prepare now, using this checklist, you will be able to develop a clearer picture of what your tax picture will look like while there’s still time to maximize current-year savings.
If you are one of the millions of taxpayers who filed a six-month extension on a 2008 tax returns, the October 15th deadline is coming up fast.
The IRS expects to receive as many as 10 million tax returns from taxpayers who used Form 4868 to request a six-month extension to file their returns. Some taxpayers, for example, may have requested a filing extension to claim the first-time homebuyer credit for a home purchase that closed after the original April 15 filing deadline. Certain taxpayers, including those affected by qualifying natural disasters as well as those serving in Iraq, Afghanistan or other combat zone, can wait until after October 15th to file.
But as reported in The New York Times, the success of the program, which was enhanced and extended by the American Reinvestment and Recovery Act earlier this year, has many calling for Congress to extend the benefit into next year and enlarge the pool of eligible recipients:
The deadline for eligible homebuyers to complete their first-time home purchases and receive the First-Time Homebuyer Tax Credit is approaching rapidly. Since enhanced by the American Recovery and Reinvestment Act (ARRA), more than 1.4 million taxpayers have received tax benefits. The IRS expects the claims to remain steady through the November 30th deadline.
“We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction,” said Eileen Mayer, Chief, IRS Criminal Investigation. “The penalties for tax fraud are steep. Taxpayers should be wary of anyone who promises to get them a big refund.”
The President recently signed into law the Homebuyer Assistance and Improvement Act of 2010, which extends the closing deadline for the Homebuyer Tax Credit to September 30, 2010. The extension comes in response to concern from buyers worried about filing closing paperwork by the prior July 2 deadline. As guidance from the IRS states, homebuyers still must have entered into a binding contract to purchase a home before May 1, 2010.
As 2009 closes in just a few days, there are some important tax changes that will help you save money and prepare to file your 2009 tax return in the spring. We have summarized many of the major changes in our blog post, 
Winter is generally a slow season for Real Estate sales, but analysts are predicting a warmer season in 2009. 
Taxpayers looking to take advantage of the $8,000 
