For those home owners out there that lamented a few months ago about missing the government $8,000 first time home buyer credit, the good news is now you can get some money, not $8,000 though, but $6,500 from the government, if you do the following:
Things You'll Need
- money for the next primary home
First, understand the timing.
The new $6,500 is available now. It took effect Nov 6. The contract must be signed before April 30, 2010 and closed by June 30, 2010.
This is really a good news for those current home owners who are thinking of buying house - move up or move down in the near future.
Second, understand who is eligible for it.
Some restrictions apply:
a) Minors and dependents on another taxpayer's filings are not eligible.
b) The home must be primary residence, it could be any style, though.
c) The purchasing price must be under $800,000.
d) Your adjusted gross income must be under $125,000 if married filing separately or under $225,000 if married filing jointly.
Third, know how to get the $6,500 tax credit.
You need to submit copies of settlement statements (HUD-1 forms) along with your requests for credits using IRS form 5405.
If your closing time is between Nov 6 and Dec 31 of 2009, you can claim the $6,500 on your 2009 Federal tax returns. If your closing is in 2010, you can get your tax credit either on amended 2009 tax returns or 2010 tax returns in 2011.