Friday, January 22, 2010 |
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The homebuyer tax credit is not as simple
or straightforward as you might think. Here are some nuances that will
affect homebuyers who plan to use it.
- To qualify for the move-up
tax credit, a home owner must have occupied the same principal
residence for five of the last eight years consecutively.
- Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them.
- Buyers who claim the
credit in 2009 can’t file electronically because the Internal Revenue
Service hasn’t put the required forms on line. The wait for a refund is
three or four months.
- The home can be a
mobile home or travel trailer that is fixed to land owned or leased by
the home owner. A mobile home or travel trailer that is actually mobile
doesn’t qualify.
- The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.
- A buyer who earns no
taxable income or doesn’t owe any federal income tax can qualify for
the tax credit and file a tax return just to claim it.
Source: Bankrate.com, Marcie Geffner (01/21/2010) |
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