Michelle Frericks, Realtor®

Posts Tagged ‘homebuyer tax credit’

WASHINGTON – June 29, 2010 – According to the National Association of Realtors® (NAR), up to 180,000 homebuyers will lose their federal homebuyer tax credit through no fault of their own if Congress fails to pass an extension by June 30 when the closing deadline expires.

Included in that number are thousands of homebuyers in every state of the union, from 390 in Wyoming to 17,700 in California, according to estimates by NAR. In Florida, 14,830 homebuyers could lose the tax credit if closings are delayed.

“We are strongly urging the Senate and the House to act quickly to pass this legislation and ease the minds and pocketbooks of these homebuyers,” said NAR President Vicki Cox Golder.

“These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a workflow jam with lenders or other delays such as lapses in the National Flood Insurance Program, Rural Housing Service, and new home construction, and might not be able to complete the purchase of their homes by the current deadline,” said Golder. “It would be a tragedy for them not to be able to complete the purchase in time to claim the credit.”

NAR issued the following state-by-state estimate of the number of home sales that would be delayed beyond the June 30 deadline; numbers are rounded to the nearest 10:

Alabama, 2,590
Alaska, 830
Arizona, 5,440
Arkansas, 2,090
California, 17,700
Colorado, 3,390
Connecticut, 1,770
Delaware, 400
District of Columbia, 300
Florida, 14,830
Georgia, 6,270
Hawaii, 710
Idaho, 1,270
Illinois, 7,030
Indiana, 3,560
Iowa, 2, 030
Kansas, 1,840
Kentucky, 2,540
Louisiana, 1,800
Maine, 840
Maryland, 2,630
Massachusetts, 3,930
Michigan, 6,470
Minnesota, 3,760
Mississippi, 1,530
Missouri, 3,600
Montana, 760
Nebraska, 1,110
Nevada, 3,800
New Hampshire, 690
New Jersey, 4,300
New Mexico, 1,160
New York, 9,190
North Carolina, 4,890
North Dakota, 460
Ohio, 8,510
Oklahoma, 2,760
Oregon, 2,090
Pennsylvania, 5,830
Rhode Island, 500
South Carolina, 2,460
South Dakota, 500
Tennessee, 3,910
Texas, 15,340
Utah, 1,130
Vermont, 400
Virginia, 3,890
Washington, 3,190
West Virginia, 940
Wisconsin, 2,690
Wyoming, 390

© 2010 Florida Realtors®

The IRS has rejected many people’s requests for the homebuyer tax credit. Returns are flagged if a Form 1098 Mortgage Interest Deduction has been filed within the last 3 years. However, Form 1098 is used for timeshares, mobile homes, boats and other recreational properties and in many cases, the applicants is still entitled to the credit.

For full details and suggestions about how to deal with this if it happens to you, click here to read the full article.

After a frantic week last week with buyers desperate to find the perfect house by the April 30th deadline, the dust has settled. Now what?

The experts are uncertain if the market will hold steady or if buyer activity will decline now that the tax credit is over. One thing is certain, the chances of another tax credit being announced this year are slim to none. To learn more, click here.

Final figures are not yet in, but mortgage professionals are reporting that the current homebuyer tax credit has not spurred as many mortgage applications as the original tax credit program. Experts believe this is because first-time homebuyers benefit the most from the tax credit and many of them have already taken advantage of it during the intial offering.

To read the full text of the article, click here.

WASHINGTON – March 30, 2010 – The Florida Open House Weekend, April 10-11, is the last, best opportunity to secure up to $8,000 in tax credits for first-time homebuyers (up to $6,500 for move-up buyers).

According to the National Association of Home Builders, the following are top questions asked by prospective homebuyers. In all cases, buyers should check with the IRS or a qualified financial advisor for specific personal advice.

How does a homebuyer claim the tax credit?

The credit is claimed when the homebuyer files or amends his or her federal income taxes. For qualifying homes purchased in 2009 or 2010, the taxpayer must complete IRS Form 5405 and attach a copy of the settlement statement. In most cases, the settlement statement is a properly executed Form HUD-1.

In circumstances where a HUD-1 is not provided, such as purchasing a mobile home or a newly constructed home, the IRS will accept an executed retail sales contract (mobile homes) or a copy of the certificate of occupancy (new homes).

Does the homebuyer have to sell their current home in order to qualify for the $6,500 repeat homebuyer tax credit?

No – a homebuyer does not need to sell their current home in order to be eligible for the repeat buyer credit. They can continue to own both homes and rent or use the former home for something else providing it no longer serves as their principal residence. The taxpayer is required to use the new home as their principal residence and live in it for at least 36 months; otherwise, they must repay the credit.

Do married couples both have to meet the eligibility requirements in order to claim the credit – even if they file taxes separately?

Both spouses must fully meet all the eligibility requirements for either the $8,000 first-time homebuyer tax credit or the $6,500 repeat buyer tax credit, regardless of whether they file joint or separate tax returns. However, if an unmarried couple purchases a home and only one person qualifies, the eligible person may claim the full credit.

Do all home purchases need to be completed by April 30, 2010, in order to be eligible for the credit?

There are two exceptions to the April 30 deadline. If the buyer enters into a binding contract by the deadline, they have until June 30, 2010, to complete the purchase. The deadline has been extended a year, to April 30, 2011, for members of the uniformed services, Foreign Service or employees of the intelligence community who have been on qualified extended duty outside the United States for at least 90 days between Jan. 1, 2009, and April 30, 2010.

For more information on the tax credit and the Florida Open House Weekend, visit Florida Realtors website at: http://www.floridarealtors.org/AboutFar/OpenHouse/index.cfm

© 2010 Florida Realtors®