Homebuyer Tax Credit
New Law Extends Bush-Era Tax Cuts, Reinstates Estate & Gift Tax
On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 , or H.R. 4853 (hereafter, “the Act”). The bipartisan legislation extends for two additional years many of the so-called “Bush-era tax cuts” originally enacted under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). Key provisions of the new law extend the individual and capital gains/dividend tax cuts for all taxpayers through 2012, enact a payroll tax cut for 2011, provide a two-year AMT patch, and establish a top estate tax rate of 35 percent with an exclusion of $5 million.
New Law Extends Homebuyer Federal Tax Credit Closing Deadline Extended to September 30th
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: A copy of the settlement statement showing all the relevant parties’ information. Normally, this is the properly executed Form HUD-1, Settlement. Read More.
Have You Developed a Year-End Tax Strategy? Time Is Running Out
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.
Taxpayers Should Pay Careful Attention to IRS Recordkeeping Guidelines
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. Click here to download IRS Publication 552, Recordkeeping for Individuals.
Winter Expected to Warm Up for Home Sales Thanks to Tax Credit Extension
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 tax credit for first-time home buyers. Read More.
New Law Expands and Extends Homebuyer Tax Credit
There is good news for those individuals interested in buying or selling a home. On November 6, 2009, President Obama signed into law the Worker, Homeownership, and Business Assistance Act of 2009 (H.R. 3548) , which includes provisions designed to enhance the homebuyer tax credit program . 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. Read More.