You’ve decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit. Here’s what you have to do to get your benefit: — Close on your home purchase between November 7, 2009 and April 30, or
You’ve decided to purchase a home and take advantage of the Extended Home Buyer Tax Credit. Here’s what you have to do to get your benefit:
— Close on your home purchase between November 7, 2009 and April 30, or have a binding written contract by April 30 and close by July 1.
— Decide whether to apply the credit to your 2009 tax return — filed on or before April 15 — file an amended 2009 return, or apply the credit on your 2010 return — filed on or before April 15, 2011.
— Attach documentation of purchase to your return.
When to apply the credit
— Buyers purchasing homes on or before December 31, 2009 may claim the credit on their 2009 tax returns.
— Buyers purchasing in 2010 will have the option to: Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
— File an amended return for 2009 if their purchase is completed after April 15, or claim the credit on their 2010 tax returns.
If you, or your client, purchased a home between January 1, 2009 and November 6, 2009, please visit http://www.realtor.org/wps/wcm/connect/RO-Content/ro/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit_how_to for more information on “How to Get the 2009 First-Time Home Buyer Tax Credit.”
Applying the credit to your 2009 Taxes
Credits cannot be filed electronically. You will need to do three things to claim the credit on your 2009 tax return:
— Fill out Form 5405 to determine the amount of your available credit
— Apply the credit when you file your 2009 tax return or file an amended return
— Attach documentation of purchase to your return or amended return.
• The Kaua‘i Board of Realtors is a nonprofit organization comprised of Realtors and associates from the bank, mortgage and escrow industry. For more information, visit www.kauaiboard.com.
