The tax credit is not as straighforward as you think!  A few facts about the revised and extended tax credit you should know about. 

 

To qualify for the move-up tax credit, a home owner must have occupied the same principal residence for five of the last eight years consecutively as their primary residence.

Purchasers have the choice of claiming the credit on either their 2009 or their 2010 tax return, whichever works best for them.

Purchasers who claim the credit in 2009 can’t file electronically because the IRS hasn’t put the required forms online. The wait for a refund is three or four months.

The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn’t qualify.

The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.

A purchaser who earns no taxable income or doesn’t owe any federal income tax can qualify for the tax credit and file a tax return just to claim it.

For freqently asked questions on the tax credit click here.

By Bryan Low

Tags: Bethesda Real Estate, Bryan Low, Buying your first home, Chevy Chase Real Estate, First-Time Home Buyers, Kensington Homes, Long and Foster Real Estate, Montgomery County, Rockville Homes, Tax Credit

This entry was posted on Sunday, January 24th, 2010 at 1:49 pm and is filed under buying. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.