Top 4 Questions Las Vegas Homes Buyer Have About The Tax Credit
Although the filing of 2009 federal tax returns had
reached its deadline (April 15, 2010), buyers of Las Vegas homes still have questions about the home buyer’s tax
credit.
Here are the answers to the most frequently asked questions to make sure that you are informed about this great opportunity to
benefit from buying Las Vegas homes
before it expires on April 30:
1. How do you
claim the tax credit?
The credit
is claimed when you file or amend your federal income taxes. If you have
qualifying Las Vegas homes
purchased in 2009 or 2010, as a taxpayer you must
complete IRS Form 5405 and attach a copy of the settlement statement. Usually,
the settlement statement is a properly executed Form HUD-1. The IRS will accept
an executed retail sales contract (mobile homes) or a copy of occupancy (new
homes) in circumstances where a HUD-1 is not provided such as buying a mobile
home or a newly constructed home.
2. Do you have
to sell your current Las Vegas home in order to be qualified for the $6,500
repeat home buyer tax credit?
No. You can
continue to own both homes, and rent or use former Las Vegas homes
for something else, on condition
that it will no longer serves as your principal residence. You are required to
use the new home as your principal residence, and reside in it for at least 3
years, or you will have to repay the credit.
3. Do married
couples both have to meet the eligibility requirements to claim the credit,
even if they file their taxes separately?
Although
both spouses file joint or separate tax returns, they both have to meet all the
eligibility requirements for either the $8,000 first-time home buyer tax credit or the $6,500 repeat buyer tax
credit. On the other hand, if they purchase Las Vegas homes
and only one person qualifies, the eligible person
may claim the full credit.
4. Do all
Las Vegas home purchases need to be completed by April 30, 2010, in order to be
eligible for the credit?
Those buying Las Vegas homes, who enter into a binding contract by the deadline,
have until June 30, 2010 to complete the purchase. The deadline has been
extended a year (to April 30, 2010) for those members of the uninformed
services, Foreign Service or employees of the intelligence community who have
been on qualified extended duty outside the United States for at least 90 days
between January 1, 2009 and April 30, 2010.