the wasserblawg

A new IRS bulletin , released just before Thanksgiving is offering new details that should clarify many of recurring questions about the First Time Homebuyers Tax Credit. The most important takeaway in that bulletin however is that anyone who closed on their purchase after November 6, intending to claim the tax credit better wait a couple-three weeks until the IRS releases a newly revised Form 5405. Critical details released last month: CO-OWNERSHIP SITUATIONS an otherwise qualifying unmarried individual who purchases a home together with someone who does not, can claim the full $8,000 credit. an otherwise qualifying son or daughter who purchases a home with parents who do not qualify can also claim the entire $8,000 credit. PURCHASE PRICE,INCOME, & AGE LIMITATIONS Single taxpayers earning up to $125,000 in "modified adjusted gross income" and joint filers earning up to $225,000 qualify for full tax credit benefits (up from $75,000/150,000). Singles filers with incomes...

FHA (finally) Reveals the Details U.S. Secretary of Housing and Urban Development Shaun Donovan made headlines two weeks ago when he first announced that the FHA would allow first time home buyers to apply their $8,000 tax credits immediately, at their closings (The credit would otherwise be claimed when the buyer files his or her Federal Income Tax return). Last Friday, FHA released mortgage letter 2009-15 which sets out the rules to implement this new policy. Welcome the latest form of secondary mortgage financing - the Tax Credit Advance Loan . A big hat tip to Peter Olson's CCRE for alerting us all to the FHA's announcement. The concept seems pretty straight forward. Buyers are going to offered the opportunity to take a second loan at the closing that roughly equates to the amount of their tax credit. The loan will be repaid or forgiven over time as would the tax credit as originally formulated. WHY CHICAGO AREA BUYERS WANT TO USE THE CREDIT AT CLOSING This might be help...

Earlier this week, the U.S. Senate approved an amendment to the proposed economic stimulus plan that is of particular interest in the real estate community. The Liberman - Isakson Amendment , as proposed, would extend and broaden last years first time home buyers tax credit. (Keep in mind that the Senate has not yet voted on the bill; the House still has to agree, and the President must sign the law before it might take effect.) Here are the essential points as proposed: Home Buyers will receive a pure tax credit (a reduction of the taxes otherwise owed) The credit would be 10% of the purchase price , up to $15,000.00. Provided that the home purchased becomes the buyers primary residence, for at least two years You can only use the tax credit one time. If the home is purchased in the first year this law exists, you can elect to take the credit as if the house was purchased on December 31, 2008 (that is, the credit can be applied on 2008 returns . Or, if a home buyer prefers, the ...