What's New for 2009?
For 2008 Home Purchases:
A tax credit of up to $7,500 can be claimed for homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.
For 2009 & 2010 Home Purchases:
The first-time homebuyer credit has been expanded by increasing the credit amount to $8,000 for taxpayers who purchase or enter into a binding contract to purchase, their primary residence by April 30, 2010 and close on the home by June 30, 2010. The credit does not have to be repaid unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.
First-time homebuyers who purchase a home in 2009 can claim the credit on their 2008 tax return, due April 15, 2009, or their 2009 tax return, due April 15, 2010. For 2010 qualified purchases, the credit may be claimed on either the 2009 or 2010 tax return.
New legislation signed into law on November 6, 2009 also provides a homebuyer's credit for long-time homeowners who buy a replacement principal residence. These individuals may also claim a homebuyer credit of up to $6,500 provided that they lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home was purchased.
Taxpayers who purchase a new passenger vehicle after February 16, 2009 and before January 1, 2010 may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns. The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
Be aware of how to protect yourself from these top 12 tax schemes for the upcoming tax season and how to report suspected fraudulent activity. Click here for additional information.
New Millennium Tax Service, Inc.
"Professional Accountants at Your Service"
Trevor C. Morris
President
Troy W. Atherley, CPA
Vice President
