Home Real Estate First Time Home Buyer Tax Credit Extension

First Time Home Buyer Tax Credit Extension

First Time Home Buyer Tax Credit Extension

What is the First
Time Home Buyer Tax Credit Extension?


An individual may be able to obtain the first-time homebuyer
tax credit if they are regarded as an eligible buyer who has purchased a home
as their primary residence in the taxable years of 2008, 2009 or 2010. The
eligibility requirements will vary depending on the year of the purchase.
Moreover, there are specific benefits attached to the military members or
federal employees.

The First Time Home Buyer Tax Credit will reduce the buyer’s
tax bill—or increase their refund—depending on the taxes the individual owes.
The Internal Revenue Service will refund the credit, even if they own no tax or
the credit is more than the taxes owed. Legislation was officially enacted in
July of 2010 formally extending the closing deadline from June 30th
to September 30th for all eligible home purchasers. Furthermore,
legislative alterations that took place in November of 2009 extended the First
Time Home Buyer Tax Credit and added documentation requirements for securing
the credit.

The American Recovery and Reinvestment Act of 2009
officially enacted the First Time Home Buyer Tax Credit Extension by increasing
the credit figure to $8,000 for purchases made in 2009 before the first of
December. Additionally, the Worker, Homeownership and Business Assistance Act
of 2009 extended the deadline—any taxpayer who purchased a home before May 1st
of 2010 is eligible for the First Time Home Buyer Tax Credit Extension—the
buyer must have officially closed on the home before September 30th
of 2010.

 

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