First-Time Homebuyer Tax Credit

The First-Time Homebuyer Tax Credit has been extended. On November 6, 2009, the Worker, Homeownership and Business Assistance Act of 2009 was signed into law. This act extends and expands the first-time homebuyer credit. An eligible taxpayer entering into a binding contract on or before April 30, 2010 and closing on his or her home by June 30, 2010, will have the opportunity to claim the $8,000 credit. Due to some abuses of the original credit, the IRS is requiring additional supporting documentation. Click on the link below to see the complete list of documentation that may be required when claiming the credit.

The Worker, Homeownership and Business Assistance Act also includes an opportunity for long-time residents to claim a credit up to $6,500. To qualify for this credit, a buyer must have owned and lived in the same home as primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as primary residence. For assistance in claiming the First-Time Homebuyer Tax Credit, or to get more information about the credits, contact Brandon – brandon@ulrichcpa.com or (801)627-2100.

IRSHomebuyerCreditDocumentation.pdf