We’ve talked to a lot of real estate agents since we started this site, and we’re finding that people still haven’t figured out some of the most interesting aspects of the Home Buyer Tax Credit. In putting together HomeBuyerTaxCredit.com, particularly in working through the myriad complications in the Eligibility Test, we found some hidden gems in the Home Buyer Tax Credit that most real estate agents and buyers have not yet identified.
Here are five of them:
1. You can take the tax credit on a 2010 purchase if your income qualifies for 2009 or 2010.
This is the biggest misunderstanding about the tax credit: if you are otherwise eligible, you can claim the credit if your income is within the guidelines either for 2009 or 2010. Most people, including agents, think that buyers have to qualify based on their 2010 income, OR their 2009 income. Indeed, it’s both. Think about the implications of that. It means that a buyer who had a bad year in 2009 (like a lot of people) might qualify under the income guidelines for their 2009 income. Those people, if they otherwise qualify and close by June 30th, they can take the credit on their 2009 taxes, even if they expect to make too much in 2010. All they need to do is get an extension of the April 15, 2010 filing deadline, or just file and then later file an amended return after their closing.
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