New Deadline for First-Time Homebuyer Credit

Thanks to a law enacted July 2, 2010, taxpayers have a new opportunity to obtain the first-time homebuyer credit.  Originally, the new home contract must have been made by April 30 -- AND you settle by June 30.  The June deadline has been extended to September 30, 2010 to close on the home. 

You still need to have signed a contract before May 1, 2010. 

Reminders about the Credit:

• To be considered a first-time homebuyer, you and/or your spouse must not have owned another principal residence during the three years prior to the date of purchase.
• To be considered a long-time resident homebuyer, your settlement date must be after November 6, 2009 and you and your spouse – if you are married – must have lived in the same principal residence for any consecutive five-year period during the eight-year period that ended on the date the new home is purchased.
• The maximum credits remain: for a first-time homebuyer is $8,000 and for a long-time resident homebuyer is $6,500.
• To claim the credit you must file a paper return and attach IRS Form 5405 along with all required documentation. 

You are not able to claim the credit if:

• The purchase price is greater than $800,000
• You can be claimed as a dependent on someone else’s return
• You and your spouse are under 18 as of the purchase date
• You acquired the house from a relative  

With the new law you might be eligible to file an amended 2009 Tax Return to qualify for the credit! For more information contact your local PRO-TAX office or visit IRS.gov/recovery.  

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