New Home Tax Deduction for 2009, 2010
Youve probably heard about right now being the right time to buy a new home at least a dozen times over the last couple of months right? Well me too but Ive also had the benefit of having many friends actually do this, very successfully.
There are many deductions available to anybody with even the slightest mind to improve the property or even to install energy efficient windows. Through the year 2009 we also saw a new homeowners tax deduction, and now were going to see it through the year 2010 as well. What is it you ask?
If youre a first time home buyer and you bought your new home after January 1st of 2009, then youll be eligible to receive a $8,000 tax credit. This credit is only available for single buyers with incomes of up to $125,000. Its also available for couples with a combined income of up to $250,000. The original stipulations were actually a bit lower than these numbers, but were raised last November.
Another good thing to know is that homes costing more than $800,000 are not eligible for the credit. Also, if you sell your new home or cease to use it as your principle residence in the next three years after its purchased, then you will be required to repay the credit.
You will need the IRS tax form 5405 and can claim the new home deduction on either your 2009 or 2010 return. However, keep in mind that there are many online services, such as TurboTax Online, that you can utilize to file all of this information quickly and properly without the hassle of downloading forms and depending on the mail.
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