15 days more to use the Time Home Buyer Tax Credit

15 days more to use the Time Home Buyer Tax Credit

The Government's First-Time Home Buyer Tax Credit program will expire November 30, 2009 - a call 60 days from today.

Considering it can take up to 60 days to close at a home for first time buyers have 2 weeks to find a home.

Buyers are not under contract by October 15 has little chance of meeting November 30 deadline, and thus little chance of applying for tax credits.

This is especially true for purchases with short sales and foreclosures.

Congress passed the first Homebuyers Tax Credit Program as part of the 2009 economic stimulus plan. IRS Form 5405 outlining the program criteria and includes the following provisions:

• Buyers can not have owned a "main home" in the last 36 months

• The home can not be purchased from a parent, spouse or child

• Adjusted gross income for the household must be below $ 95,000 for single tax Filers and $ 170,000 for joint tax Filers

The credit is capped at $ 8,000 or 10% of the purchase price, whichever is less. And do not forget - for the first time Home Buyer Tax Credit is a true tax relief. It is not a deduction.

This means that a tax files, claiming the full $ 8000 and if the "normal" tax is $ 5000 will receive $ 3,000 cash from the U.S. Treasury, when their tax returns processed by the IRS. 

If you can not shut down in November 30, 2009, however, you can not honor.

The clock is ticking. If you plan to use First-Time Home Buyer Tax Credit, the time to act is now.