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For an easy to follow and short synopsis of the new rules for the first-time home buyer tax credit, watch this four minute flash presentation. It summarizes all the things you need to know, including how to qualify if you already own a home.
New Rules for the First-time Home buyer Credit (Flash presentation)
One interesting tax planning idea is that if you buy and settle on your home between 1/1/2010 and 7/1/2010, you can elect to go back and apply the credit on your 2009 tax return. That will mean you may need to extend the filing date of your return beyond the 4/15/2010 due date. An automatic 6-month extension is available until 10/15/2010. Consult with your CPA or financial advisor.
Despite being less than two years old the first time home buyer tax credit program has changed a lot. Here is a summary and short history of the credit.
Background on the first time home buyer tax credit
Fasten your seat belts because the White House may not be done with incentives for homeowners. There are rumblings that the White House is lobbying for home improvement incentives that would allow homeowners to fix up their homes in energy efficient ways and earn even more tax savings. Stay tuned and sign up for my blog by email, I'll keep you posted on all the facts as they come out.
Tom Taylor, CPA is a fee-only, independent Financial Planner and Certified Public Accountant and can be contacted at Chesapeake Financial Advisors or Taylor & Company in Towson, MD. He is a member of NAPFA and the MACPA and AICPA.
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