First Time Home Buyer's Credit Updates
The First Time Home Buyer Credit now applies to any taxpayer who enters into a written binding contract by 04/30/2010 to purchase a principal residence if the closing date on the purchase occurs before 07/01/2010.
Who qualifies as a "First Time Home Buyer?"
If you haven't owned a home during the past 3 years, then you are a "First Time Home Buyer". For primary homes purchased between 01/01/2009 and 04/30/2010, the maximum credit is $8,000 ($4,000 if married but filing separate returns), and needn't be paid back. Qualifying Individuals who purchase homes during 2009 (on or before 04/30/2010) can elect to claim the credit on their original or amended 2008 tax returns. Credits for 2010 purchases can go on 2009 tax returns.
The credit is still refundable which means it is allowed in full even if it exceeds your tax bill for the year. Taxpayers should note that the credit will be recaptured if the home is sold within 3 years of purchase.
Tightened Rules Regarding Documentation
More documentation is now required to claim the credit. A signed copy of the settlement statement must be attached to the tax return to claim the credit. This means that the tax return cannot be e-filed.
