Especially important and valuable is the First Time Buyers Tax Credit of up to $8,000 - are you looking to buy your first home? Or are your kids? Someone else you know?

There are already plenty of good reasons to buy a home - continuing low mortgage rates, house prices significantly reduced after falling over the past several years, and a large choice of homes on the market. These tax credits offer further incentive.

Here are the basic features of the Home Buyer Tax Credits :-

First Time Buyers

• for buyers who have not owned a home as their principal
  residence in the past 3 years
• a refundable tax credit of 10% of Purchase Price,
  maximum $8,000 (so a purchase of $80,000 or more will qualify for the full credit)

Repeat Buyers

• for buyers who are existing home owners, and who have lived in that home as their principal residence for 5 consecutive years in the past 8 years
• a refundable tax credit of 10% of Purchase Price, maximum $6,500
• the existing home does not have to be sold, but the new purchase must become the primary residence

For both Tax Credits

• for purchase of a principal residence only (not for second homes or investments)
• must have a ratified contract for purchase by April 30, 2010
• must close on the purchase by September 30, 2010 (extended from June 30)
• maximum qualifying income levels for the full credit are $125,000 for single tax filers, and $225,000 for married people filing jointly. The credit is reduced on a sliding scale up to $145k and $245k respectively. Higher Income levels are not eligible for the credit
• maximum qualifying purchase price $800,000
• the credit is not repayable, unless the home is sold within 3 years (there are exceptions for military personnel)
• Note: for members of the military (and certain employees of the Foreign Service and intelligence community) who served outside the US for at least 90 days between 12/31/08 and 5/1/10, the tax credits are available for a further 12 months to April 30, 2011 (close by June 30, 2011). All other qualifying criteria still apply.
• improved powers granted to the IRS for investigating possible fraudulent claims

Of course, you need to qualify for your mortgage finance, but there are still many schemes available for buyers with satisfactory credit. If you need assistance with this, or require more information on the Tax Credits, please call or email me and let me have some information about yourself and your plans.

How to Obtain the Tax Credits

These tax credits are claimed from the IRS via your tax return, by completing IRS form 5405. You cannot submit a claim until you have completed the purchase.

• if you completed your purchase before November 30, 2009, you may either submit an amended 2008 tax return, or claim the credit on your 2009 tax return
• if you complete your purchase between December 1, 2009, and September 30, 2010, you may claim the credit on your 2009 tax return (or amended return), or you may delay it until your 2010 return if you wish

Please call or email me, and let's start the ball rolling.

Disclaimer: this information is provided for your convenience, and every attempt has been made to ensure its accuracy. However you should confirm your own personal circumstances with
a tax advisor. Ultimately, your eligibility for a tax credit is between you and the IRS.