April 18th is Tax Day! And one of the best tax write-offs is a home. There are so many tax benefits to owning vs. renting, that we highly recommend everyone researches their options before making a decision either way.
Tax rules for real estate are constantly changing, therefore we suggest reading a useful publication (IRS Publication 530) called Tax Information for Homeowners that covers such topics as:
- How you treat items such as settlement and closing costs, real estate taxes, sales taxes, home mortgage interest, and repairs
- What you can and cannot deduct on your tax return
- The first-time homebuyer credit
- The tax credit you can claim if you received a mortgage credit certificate when you bought your home.
- Why you should keep track of adjustments to the basis of your home. (Your home’s basis generally is what it costs; adjustments include the cost of any improvements you make.)
- What records you should keep as proof of the basis and adjusted basis
- And other helpful information
Download the Publication 530
Although we, as Real Estate Professionals, are knowledgeable about the tax laws, your best resource is always a tax accountant or attorney.
Time is running out for active veterans who served on an official, extended duty service outside of the United States for at least 90 days during the period of December 1st 2008 through May 1st 2010. Members who qualify will be granted an extension on the Home Buyer Tax Credit that expired September 31, 2010.
In other words, any active veterans who served overseas for over 90 days between the aforementioned dates can qualify for the same home buyer tax if they are in contract to purchase by April 30th, 2011 and complete the transaction by June 30th, 2011.
Interested in more information? Contact our Director of Government Relocation today.
Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623).
The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension. The new closing deadline for eligible transactions is September 30, 2010.
There will be no gap between June 30 and the date the President signs the bill into law. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.
The extension was necessary to help an estimated 200,000 home purchasers qualify for the government tax credits because many are involved with transactions that are lasting over 60 days. These transactions include short sale and bank-owned (REO) properties.
Source: Realtor.org (6/30/2010)
Time is running out! In just 24 days the $8,000 First Time Home Buyer tax credit as well as the $6,500 Repeat Home Buyer tax credit both expire. This means you must have a ratified contract on the home you wish to purchase by midnight on April 30, 2010. Once under contract, you must settle and take ownership of the home by June 30, 2010.
Those in the military may have up to April 30, 2011 if they are or have been serving on official duty.
What are you waiting for? Start your home search now.
Congress has acknowledged the unique circumstances affecting members of the military, the foreign service and the intelligence community by making the following exceptions that apply to both the $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers. Continue reading
The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).
The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.
The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.
The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation. Continue reading