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Buy a home by June 30, and still cut ’09 taxes

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in Leaders & Managers,Management Training,Small Business Tax,Small Business Tax Deduction Strategies

Thanks to a new law change, longtime homeowners can now get a piece of the homebuyer credit pie.

Strategy: Move fast if you plan to buy a new home. To qualify, you must complete the purchase before May 1, 2010. If you secure a binding contract before May 1, you have until June 30, 2010, to finalize the sale.

Best of all, you don’t have to wait until you file your 2010 tax return to reap the rewards. You can claim the credit on your 2009 return—even if you buy the home in 2010.

Taxpayers who claim the first-time homebuyer credit on their 2009 returns will not be able to file electronically. (IRS News Release IR-209-18) Also, the IRS has revised Form 5405, First-Time Homebuyer Credit, to reflect the new law changes.

Alert: A taxpayer who purchases a home after Nov. 6, 2009, must use the revised form to claim the credit. Taxpayers claiming the credit on their 2009 returns must use the revised form no matter when t...(register to read more)

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