Article

Claim Your Piece of the Tax Credit Pie

Topic: Real EstateBy Christoher J ShawPublished Recently added

Legacy signals

Legacy popularity: 1,454 legacy views

Legacy rating: 2/5 from 2 archived votes

Reader rating

Not enough ratings yet

Aggregate average appears after enough eligible reader ratings.

Rate this resource

Sign in to rate this resource.

Sign in to rate this resource

There is great news for those of you who did not take advantage of the $8,000 tax credit previously offered first time home buyers! It is back by popular demand with a few new features. According to the Internal Revenue Service, more than 1.5 million claims were processed from individuals and families who have purchased a home betwee
January and September 2009, The analysts estimate that more than two-thirds of all current homeowners and nearly all first-time buyers will be eligible for the credit extension. Let's take a closer look at how the government sliced the new pie.
Who Qualifiesr
For first time home buyers purchasing a new or resale home as a principal residence you must not have owned a principal residence 3 years prior to the new purchase. For married couples there is a catch. If one spouse has owned a home within the 3 years prior to the purchase, neither spouse can qualify. However, unmarried joint purchasers can allocate the credit to any buyer who qualifies.
(ex. Mother and son) Note: The credit does not apply to vacation homes or rental property.
Longtime Homeownersr
Previously only first time buyers could qualify for the tax credit. Now the program has been expanded to include longtime homeowners receiving a tax credit up to $6,500 (up to $3,250 for married filing separately) for the purchase of a new principal residence. To qualify the homeowner must have lived in the same principal residence for any 5 consecutive year period that ended on the date the replacement home is purchased.
New Deadliner
The deadline has been extended to qualifying purchases made After November 6, 2009 through April 30, 2010. The contracts must be binding by April 30, 2010 with purchases completed by June 30, 2010.
Military Membersr
The tax credit has also been expanded to allow members of the military and certain other federal employees serving outside of the U. S. an additional year to claim the credit.
Qualifying Income Increaser
For purchases made after November 6, 2009 and by April 30, 2010 the income limits have been increased to a modified adjusted gross income between $125,000 and $145,000 for single buyers or an (MAGI) between $225,000 and $245,000 for married couples qualifying for the full tax credit. The increased income limit is not retroactive to purchases made prior to November 6, 2009.
How to Claim the Creditr
To claim the credit you must file form 5405 with your original or amended tax return.
The credit does not require repayment unless the home is sold or is no longer the buyer’s principal residence within 3 years after the purchase.
New Restrictions

*A purchaser must be at least 18 years of age on the date of purchase.
*The credit cannot be claimed if the purchase price of the home is more than $800,000.
*Dependents are not eligible to claim the credit.
For more information on how to take advantage of the tax credit you should consult with your Accountant or tax preparer or visit www.irs.gov.

Article author

About the Author

Christopher Shaw is a seasoned Real Estate Investor, with over 12 years of experience and has a passion for working with First Time Home Buyers, Mr Shaw has an ambitious goal of helping 1000 new First Time Buyers become home owners of the next 36 months. In addition to the 1000 new home owners he expects to create over the next 36 months wants to leverage each transaction to adopt up to 1000 families through Volunteers of America's Adopt a family Program.

www.Myfirstmichiganhome.com
www.Michiganpropertyvirgins.blogspot.com

Further reading

Further Reading

4 total

Article

The Evolution of the Resident Experience Imagine a property manager named Alex. Alex oversees three hundred apartment units across a bustling metropolitan area. A few years ago, Alex’s day began and ended with a symphony of ringing phones. Between leaky faucets, lost keys, and prospective tenants asking about square footage, the actual work of managing a property—strategy, inspections, and community building—was often buried under a mountain of missed calls and frantic

February 20, 2026

Article

The American housing market, a dynamic and often bewildering entity, is influenced by a myriad of factors – interest rates, supply and demand, economic stability, and even global events. Yet, beneath the surface of these well-documented drivers, an unexpected force has been quietly at work, contributing significantly to its current boom: the thriving call centers in Pakistan. This might seem like an unlikely connection, but a closer look reveals a sophisticated symbiotic re

July 3, 2025

Article

The Search for Serenity Life in the city can be overwhelming—constant noise, endless traffic, and the relentless rush of daily responsibilities. Sometimes, all one needs is a quiet retreat, a place where time slows down, and nature takes over. Surprisingly, such havens exist just beyond Islamabad’s bustling streets. Tucked away in the Margalla foothills and the surrounding countryside, serene farmhouses in Islamabad offer a perfect escape from urban chaos. A Glimpse into

June 25, 2025

Article

Dubai's skyline is a testament to ambition, a dazzling display of architectural marvels rising from the desert. Its real estate market, much like its towering structures, is a landscape of unparalleled dynamism and fierce competition. In such an environment, merely having a property to sell, or even a prospective buyer, is no longer enough. The true currency of success lies in something far more refined: the qualified lead. The Illusion of Abundance: Quantity vs. Quality Once

May 21, 2025