As a Vernon Hills real estate agent, many of my current clients are planning to take advantage of the $8000 first time home buyer tax and others are planning to claim the $6500 repeat buyer credit. Buyers are coming out of the woodwork and Vernon Hill homes priced less than $300,000 are moving quickly.
If you are moving to the Vernon Hills area, or selling your Vernon Hills home, I feel that if you don't begin your search looking for a home or putting your home on the market, you will miss the opportunity for you or your potential buyer to take advantage of these credits!
The Worker, Homeownership, and Business Assistance Act of 2009 has recently extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence.
The bill also authorized a tax credit of up to $6,500 for qualified repeat home buyers. The home you purchase needs to be undercontract by April 30th, 2010. 
There are so many questions you as a potential buyer may have, and I have provided links below that I feel explain this new tax law the best! I used to be a tax accountant, and I know how complicated the rules can be for even the most seasoned professionals. If you have any additional questions, please do not hesitate to call me. If I can’t answer , I know some of the best tax accountants in the Vernon Hills area.
For more information about the first time home buyer’s credit, this is the best information I have read thus far!
Questions and Answers about the First Time Home Buyer’s Credit
Questions and Answers about the Credit for Repeat Buyers
How to claim your credit is very important... The IRS had published the following guidelines
2009 Tax Return
Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2009 tax return must file a paper — not electronic — return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (see the instructions for help with the form), and a properly executed copy of a settlement statement used to complete the purchase.
- Purchasers of conventional homes should include a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties' names, property address, sales price and date of purchase.
- Purchasers of mobile homes who are unable to get a settlement statement should include a copy of the executed retail sales contract showing all parties' names, property address, purchase price and date of purchase.
- Purchasers of newly constructed homes where a settlement statement is not available should include a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
Note Regarding Signatures: While the Form 5405 instructions indicate that a properly executed settlement statement should show the signatures of all parties, the IRS recognizes that the elements of the settlement document, often a Form HUD-1, may vary from jurisdiction to jurisdiction and may not reflect the signatures of the buyer and seller. The settlement statement that must be attached to the return is considered to be properly executed if it is complete and valid according to local law. In locations where signatures are not required the IRS encourages the buyer to sign the settlement statement prior to attaching it to the tax return even in cases where the settlement form does not include a signature line.
Long-Time Residents: The November 2009 legislation extends the credit to long-time residents of the same main home if they purchase a new main home. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. For long-time residents claiming the credit, the IRS recommends attaching, in addition to the documents described above, any of the following documentation of the five-consecutive-year period:
- Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
- Property tax records or
- Homeowner’s insurance records
If you would like more information about the Vernon Hills area, please do not hesitate to call me.
The above information regarding was provided by Judy Greenberg,Vernon Hills Real estate agent with Coldwell Banker Residential Brokerage
Judy's websites, www.movetolonggrove.com , www.buffalogroveareahomes.com and www.judygreenberg.com will provide you all the information regardless as to whether you are a potential buyer or seller!
Judy can be reached at 847-602-5435 or via email at info@buffalogrovehomes.com. Judy has helped people move in and out of the Chicago Northwest Suburbs.
