There are two credits for home buyers that were made available by The Worker, Homeownership, and Business Act of 2009. Eligible first time purchasers as well as “move-up” home buyers are included in the tax credit. The credit for for qualified first time buyers is up to $8000 while for “move-up” buyers the credit is up to $6500.
The really interesting thing is that if even if you purchased your home in 2009 you may be able to claim this credit on your 2008 taxes by filing or with an amended return. This means you can get up to $8000 back on your house purchase now. Also, you don’t have to be moving up to use the “move-up” credit. You can downsize or purchase and move into a similar house. You do have to make this new house your residence in order to get the credit.
Another aspect of this act is that it allows the carrying back of 2008 or 2009 net operating losses for up to 5 years. If you’ve had losses due to the recession you may be able to receive a refund on your taxes from prior years.
There are a number of requirements and issues to consider if you’re looking to apply one of these credits so I’ve included some notes and links to articles.
- This act applies to most taxpayers but some TARP recipients, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation are not eligible.
- To be eligible the home must not be valued over $800,000.
- This credit can be taken on your 2008, 2009, or 2010 federal tax return depending on when you purchased the home.
- These tax credits are being more closely scrutinized by the IRS due to some fraudulent claims.
- There were similar provisions in the Economic Stabilization Act of 2008 with different limitations and credits.
To collect your refundable credit NOW, contact Thompson CPA for assistance with preparing and filing an amended return.