IRS and Tax Law

Despite what you're hearing, the federal home buyer tax credit has not been extended beyond its June 30, 2010 deadline to September 2010. At least not yet.

November 6, 2009, Congress modified the $8,000 First-Time Home Buyer Tax Credit program, turning it into the "regular" Home Buyer Tax Credit program. Under the program's new terms, first-time buyers are eligible for up to $8,000 in federal tax credits; "long-time" homeowners get up to $6,500. Note the term "long-time" homeowner. According to the IRS, a long-time homeowner is someone who has used a home as a primary residence for at least 5 consecutive years dating back to 2002.

Whether you've filed your tax returns already or are among the millions that wait until April 15, watch this short video. It shows you a few tax deductions you may have missed, and how to claim them back from the IRS.

November 6, 2009, Congress modified the $8,000 First-Time Home Buyer Tax Credit program, turning it into the "regular" Home Buyer Tax Credit program. Under the program's new terms, first-time buyers are eligible for up to $8,000 in federal tax credits; "long-time" homeowners get up to $6,500. Note the term "long-time" homeowner. According to the IRS, a long-time homeowner is someone who has used a home as a primary residence for at least 5 consecutive years dating back to 2002.

Congress voted to extend and expand the $8,000 First-Time Home Buyer Tax Credit today. The bill is expected to be signed into law Friday.The "First-Time Home Buyer Tax Credit" isn't just for first-time home buyers anymore.

Under the new rules, homeowners with at least 5 years in their current residence qualify for the tax credit, too. However, instead of the full $8,000 bonus afforded to first-timers, "move-up" buyers get capped at $6,500.

The $8,000 First-Time Home Buyer Tax Credit expires November 30, 2009. In order to claim the tax credit, the IRS requires that you've closed on or before that date. December 1, 2009 is too late. But that doesn't mean that first-time home buyers should target November 30, 2009 as a closing date. In fact, there may not be a worse day in 2009 on which to try to close on a home. The optimal time is during the week of November 16, 2009 and the earlier in the week, the better.

If you're planning to claim use the credit and haven't started looking for a home, your clock is officially ticking. You must be closed on your new home on or before December 1.

Because purchase closings come 60-days standard, therefore, your $8,000 is in jeopardy unless you go under contract prior to October 2, 2009. That's 73 days from now.

Use it or lose it, as they say.

As part of the American Recovery and Reinvestment Act of 2009, Congress authorized a first-time homebuyer tax credit of up to $8,000. The $8,000 credit replaces the $7,500 tax rebate program that was included in last year's stimulus. The $8,000 tax credit is a boon to first-time home buyers in...

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With The New Housing Law, The $250,000/$500,000 Capital Gains Exclusion Is Gone

As part of the American Recovery and Reinvestment Act of 2009, Congress authorized a first-time homebuyer tax credit of up to $8,000. The $8,000 credit replaced the $7,500 tax rebate program that was included in 2008's stimulus program. In the two months since its rollout, the $8,000 first-time...

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