Taxpayers Seeking Homebuyer Tax Credits - Refunds Must File Paper by Broderick Perkins Body Homeowners filing for the home buyer tax credit are not allowed to use electronic filing and must file hard copies due to special documentation requirements.
Earlier this year, the Internal Revenue Service (IRS) deployed new home buyer tax credit forms and instructions requiring forms that will force taxpayers to file on paper, rather than electronically.
The new home buyer tax credit filing rules are to ward off a repeat of 90,000 taxpayers who fraudulently claimed the credit, according to the U.S. Treasury. Under the new and expanded home buyer tax credit rule , the credit is worth up to $8,000 for first-time home buyers and up to $6,500 for qualifying existing home buyers, in both cases, who buy a primary residence or have one built.
The tax credit is refundable. A credit that is larger than the taxes owed is returned to the taxpayer in the form of a refund. The home can cost no more than $800,000 and qualifying income is limited to a maximum of $125,000 for single taxpayers and $225,000 for joint taxpayers. Get the full scoop online from the IRS' "First-Time Homebuyer Credit" page online.
All taxpayers (first time and move up buyers) seeking a credit or refund, must use the new IRS Form 5405 "First-Time Homebuyer Credit and Repayment of the Credit" (Taxpayers must pay back the credit if they sell the home within three years). The instructions, which teach taxpayers what documents are required, are available on IRS FORM i5405. In addition to Form 5405, also include at least one of the following documents:
A copy of the HUD-1, Settlement Statement, showing all parties' names and signatures, property address, sales price, and date of purchase.
For mobile home buyers who don't get a settlement statement, a copy of the executed retail sales contract showing all parties' names and signatures, property address, purchase price and date of purchase.
For new home buyers who don't get a settlement statement, a copy of the certificate of occupancy showing the owners name, property address and date of the certificate. Existing home owners applying for the $6,500 maximum tax credit must additionally prove they lived in their old home for the required period. To do so, options are:
File IRS Form 1098, "Mortgage Interest Statement." IRS Form i1098 offers the instructions.
Also, supply mortgage interest statements or property tax records or homeowner's insurance records. Again, because some of the documents required are not standard tax forms, taxpayers seeking the credit cannot file electronically.
They can, however, use off-the-shelf tax software or the IRS Free File online software to prepare returns, but they must still print out the return and mail it in with the required documents. In addition to accuracy and compliance, the only other way to speed up any refund is to request, with the return, that the home buyer tax credit refund be deposited directly into a bank
Source: Realty Times
Published: February 25, 2010
RISMEDIA, February 22, 2010Nationwide housing production hit its strongest pace in the last six months this January, posting a 2.8% gain to a seasonally adjusted annual rate of 591,000 units, according to figures recently released by the U.S. Commerce Department.
Builders are starting to see the positive impacts of home buyer tax credits and other favorable buying conditions in terms of consumer demand, and are cautiously increasing production to meet that demand, said National Association of Home Builders (NAHB) Chairman Bob Jones, a home builder from Bloomfield Hills, Mich.
As our latest home builder surveys have indicated, todays excellent home buying conditionsincluding the availability of tax credits for first-time and repeat buyers, very favorable mortgage rates and stabilizing home valuesare helping drive potential buyers back to the market, said NAHB Chief Economist David Crowe. However, he said, A continuing shortfall in available credit for building projects is still producing a drag on new construction and slowing the progress of recovery in housing and the overall economy.
The overall gain in housing starts was reflected on both the single- and multi-family side this January. While single-family starts posted a 1.5% gain to a seasonally adjusted, annual rate of 484,000 units, multifamily starts posted a 9.2% gain to 107,000 units.
Meanwhile, overall permit issuance, which can be an indicator of future building activity, fell 4.9% to a rate of 621,000 units in January. This was due entirely to a 23% decline to 114,000 units on the multifamily side, which offset a big gain in that sector the previous month. Single-family permits held virtually even, with a 0.4% gain to 507,000 units.
Combined single- and multifamily housing starts rose in three out of four regions this January. The South and West each registered a third consecutive month of improvement, with 1% and 8.9% gains, respectively, and the Northeast also posted a 10% gain. The Midwest saw a 3.2% decline in overall housing starts.
Conversely, permit issuance declined in three out of four regions this January. The West was the only region to post a gain, of 8.5%, while declines of 17.8%, 20.2% and 1.3% were registered in the Northeast, Midwest and South, respectively.
Search new homes in Vermont and as well as Chittenden County homes for sale.
For more information, visit www.nahb.org
According to a recent study by Millward Brown Century 21 Brand Awareness in 2009 was at a staggering 97%.
There are many significant reasons why that is important in today's Chittenden County real estate market . When selling your home, there are certain things that will cause your home to sell including pricing and exposure. In order for you to gain the most opportunities to get to the closing table, buyers have to be comfortable in calling the company marketing your home in order to schedule a viewing of their potential purchase.
With the Brand Awareness being at 97%, Century 21 is not only the most recognizable name in the real estate game, but one of the most trusted. Therefore, it does make a difference in which real estate sign you decide to put in your front lawn. It could mean the difference of selling or not selling. If you would like more information on marketing your home, drop me a line today, at firstname.lastname@example.org and we will discuss a strategy that can work for you.
[youtube width="250" height="300"]http://www.youtube.com/watch?v=7-F-IdUAKnU[/youtube]
Desirable Davis Park location! 3 BR, 1 1/2 BA Ranch style home on .5 acres w/lots of updates incl kitchen w/new KraftMaid maple cabinets,new laminate floor in kit, new floors in baths,newer windows & garage doors/openers. New 6 panel interior doors.1756 SF w/1200 SF unfin in basement, bonus room over garage great for expanded living space and/or guest qtrs, cozy fireplaced LR,covered porch, new cedar deck & an AG pool for summer fun. Fenced backyard w/gate to school yard. Move in condition!
Listed by: Kelly Farr, Realtor
CENTURY 21 Advantage