Time To Get Moving
If you aren’t in the market for a home in Tucson then skip this post and check out the Tucson Photo Blog today. If you want to keep it on site, and you have some time for hike take a look at the Pima Canyon Trail photos.
The Put It Off Gene
But if you are like most of us with the put it off gene and you are looking to purchase a home in Tucson then it is time to get moving.
You don’t have to feel bad about waiting either. The IRS just released the final documentation you are required to provide on January 15th. So you have a perfect reason for not doing anything about it till now. That said, there are just 14 weeks (counting this one) to find a home and have an accepted signed contract and 5 months to go to close. What do you need to know?
First Things First – Do You Qualify
Maybe I should back up one step and ask, “Did you even know there was a $6,500 tax credit available for the repeat home purchaser?” Yes, there is and you don’t have to be a first time home buyer, that’s why it is the “REPEAT HOME PURCHASER”. There are qualifications, there are always qualifications, it’s government, right? It is called the “long-time resident of the same main home” credit by the IRS.
- Your modified adjusted gross income must be $125,000 or less if single or $225,000 or less if married filing jointly.
- You have to have lived in your current home for 5 of the past 8 years as a primary residence.
- The home you are purchasing must become your primary residence
- The purchase contract must be dated from between Nov. 7, 2009 and April 30, 2010.
- The closing must occur no later than June 30, 2010.
- The maximum purchase price of a house for eligibility can not exceed $800,000
- You are not required to sell your current primary residence but you must make the new purchase your primary residence
Along with the the IRS revised Form 5405 you will need the following documentation.
- You can get the revised Form 5405 at www.irs.gov
- A copy of the signed HUD-1 settlement sheet (which includes the contract sale price and date of close of escrow)
- Evidence of long-term ownership and occupancy of your current primary residence
- On New construction a copy of the certificate of occupancy showing your name, the property address and closing date (if no HUD-1 is available)
- On Mobile Homes, a copy of the executed retail sales contract showing property address, purchase price and date.
Ongoing qualifications to keep from having to payback the $6,500
- If you sell the new home within 36 months of the purchase
- If you convert it into a rental or vacation property
- If the lender forecloses
You will have to pay back the $6,500 tax credit.
If any of these three might be a possibility be aware this credit must then be payed back to the IRS.
Whew, now are you ready to take advantage of the tax credit? If you are in the market for a Tucson home then now is the time to find it. There are just
