Buy home, cash in
Posted On: Thursday, Dec. 31 2009 06:11 AM
By Hailey Persinger
Killeen Daily HeraldHomebuyers hoping to take advantage of the first-time homebuyers tax credit program will have to forgo the Internet and file their claims the old-fashioned way.
The incentive, first introduced by Congress as a way to spur financial growth in the real estate sector, was extended to include purchases made through June 30, 2010, under the Worker, Homeownership and Business Assistance Act in early November 2009.
As the 2009 tax year comes to a close, some are looking to take advantage of the potential $8,000 tax credit.
While the full $8,000 is not guaranteed as awarding of the credit is based on income, claiming it is somewhat cut and dry.
Jose Segarra, spokesman for the Fort Hood Area Association of Realtors, said when people file their taxes, all that's required to claim the credit is a statement from the Department of Housing and Urban Development, which is generally given to the homebuyer at closing.
"They have the option of either filing it on their 2009 (return), which is 2008 done in 2009," he said. "Or they can wait for the upcoming season to file it. We're telling people to go ahead and wait until 2010."
While some might prefer to file their taxes as soon as they receive their W-2 forms, the HUD form can be added later as an amendment via regular mail instead of electronically.
Segarra said he recommends that homebuyers bring their HUD statement to their tax preparer since validating the purchase in that way helps avoid any possible mistakes.
Susan Jones, Harker Heights branch manager for Extraco Mortgage, said many first-time homebuyers are asking about the tax credit and some are even working on purchasing their first home specifically for tax credit purposes.
"It's a good program and we do see people who are buying houses because of that program," she said. "It's a nice incentive for people who have not purchased a home in the past three years. Anybody likes tax benefits, obviously."
The program only applies to homes that are used as principal residences and are filed using form 5405, which can be found at
www.irs.gov.
Matt Goodman also contributed to this report.
Contact Hailey Persinger at
haileyp@kdhnews.com or (254) 501-7568.