Homebuyer Tax Credits
Homebuyer 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.
Consider Recent Tax Law Changes as You Prepare Your Tax Return
As tax time approaches, businesses in the real estate and construction sectors will have to reconcile a challenging 2009. However, several pieces of legislation were signed into law over the course of the year that can provide some assistance, particularly to the residential construction industry. Before starting on your 2009 tax return, you should be aware of the following provisions. New Net Operating Loss Carryback Provisions The longstanding rule related to carrybacks of net operating losses (NOLs) allowed losses to be carried back to the two preceding tax years. Any unused NOLs were then carried forward for 20 years (which. 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.
Tax Planning Strategies & Year-End Considerations
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. Retirement Planning Look to maximize tax-deductible retirement plan contributions . The following table provides the maximum amounts that can be deferred under several popular retirement plan options during 2009.
Growth in Existing Home Sales at 2-year High
Reuters reported last week that home sales are up due largely to stimulus funding and the first-time buyer tax credit . Stacking inventories of existing homes look to be getting some relief, dropping to 7.8 month’s worth in September. The National Association of Realtors said sales surged 9.4 percent to an annual rate of 5.57 million units, the highest level since July 2007, from a downwardly revised 5.09 million units in August. Analysts polled by Reuters had expected September sales to rise to a 5.35 million unit pace from the previously reported 5.10 million units in August. William Larkin, portfolio manager with Cabot Money Management. Read More.
Pending Deadline Prompts Calls for Congress to Extend Homebuyer Credit
Taxpayers looking to take advantage of the $8,000 First-Time Homebuyer Tax Credit have only a few months to close on their home purchases. Eligible purchases must be completed before December 1st. 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: As many as 40 percent of all home buyers this year will qualify for the credit. … In the view of the real estate industry and some economists, all that money is well spent. They contend the credit is doing what it. Read More.