By Marian Wellman
Did you know if you are looking to buy (or sell!) a home, that now you have an additional advantage. The First-Time Home Buyers Credit has been extended past the original expiration date of November 30, 2009. This tax break allows purchasers who have not owned a personal residence for the past three years to receive up to $8,000 credit against their Federal income taxes (10% of the home value or $8,000, whichever is less) for purchasing their first home. This benefit has been available throughout 2009, but has now been extended to April 30, 2010, with the additional provision that if a binding contract exists on that date, the deadline to complete the purchase is June 30, 2010. First-time buyers must continue to use the house as their personal residence for three years before selling, in order to avoid having to pay back this credit.
There has been a little tightening of the law to prevent homes being purchased by minors and some other provisions, but in general the extension of this provision should prove very helpful toward the purchase of a house. This credit is "fully refundable," meaning that it will be paid to taxpayers even if they owe no income taxes.
Also, the law has been expanded to include buyers who have already owned a home. These purchasers may receive a credit up to $6,500, and they must continue to use the property as a personal residence for five of the following eight years after purchase.
For sellers, this benefit to buyers may allow for a little more negotiation on the selling price of the home, knowing that buyers can receive this tax break.
The tax credit requires to submission of Form 5405 with your 1040 tax return. For more advice, check with your tax professional.
Marian Wellman has been a tax and financial advisor since 1983, and has lived in Mexico since 2004. She can be reached through contact information on her website, www.taxesinmexico.com.
We are proud to have Marian Wellman as one of our Expert Speakers for our Focus On Mexico Programs. Her seminar on Cost of Living has helped many of our Focus clients realize that they could retire in Mexico a lot sooner than if they stayed back in the United States or Canada; and live an enhanced lifestyle in a near-perfect climate amongst the friendliest people in the world, our wonderful Mexican hosts.
Focus On Mexico offers 8-Day Educational Programs to Ajijic and Lake Chapala, Mexico (2nd Best Climate in the World). Join us on a Focus program and learn why thousands of Americans and Canadians chose to retire in Lake Chapala.
Our programs offer the perfect balance; a wonderful vacation and an insightful, educational experience. Our expert speakers cover all topics: Health Care, Real Estate, Legal System, Immigration, Bringing Pets, Cost of Living, US Taxes for Americans, Non-Residency for Canadians, Living on the Lakeside, Investing in Mexico, Mexican Economy and much more...
You’ll get everything you need to help you decide if Lake Chapala, Mexico is the place for you, plus have a lot of fun doing it. Retiring in Mexico couldn't be better.
Focus On Mexico offers 8-Day Educational Programs to Ajijic
and Lake Chapala, Mexico (2nd Best Climate in the World). Join us
on a Focus program and learn why thousands of Americans and Canadians chose
to retire in Lake Chapala.
Our programs offer
the perfect balance; a wonderful vacation and an insightful, educational experience. Our
expert speakers cover all topics: Health Care, Real Estate, Legal System, Immigration,
Bringing Pets, Cost of Living, US Taxes for Americans, Non-Residency for Canadians,
Living on the Lakeside, Investing in Mexico, Mexican Economy and much more...
You’ll get everything
you need to help you decide if Lake Chapala, Mexico is the place for you, plus have a lot of fun doing
it. Retiring in Mexico couldn't be better.