Tax Relief Firm Educates Taxpayers On the Extension Of The First Time Home Buyers Credit

Aug. 2, 2010 - PRLog -- In her ongoing effort to educate Americans on tax issues, Rebeca Manning, a Tax Consultant with K&K Tax Group, discusses the latest version of the First Time Home Buyers Credit (FTHBC).

"Under section 36, a first time home buyer is someone (and if married, such individual's spouse) who has never owned a principal residence", explains Manning. "However, under the under the latest version of the FTHBC (for purchases after November 6th, 2009), the credit is also available to existing homeowners who have maintained the same principal residence for any five consecutive years during the eight-year period ending on the date of the purchase of the new residence. The following are some of the key provisions of the latest version of the FTHBC:

-Signed on November 6th, 2009, the bill extends the $8,000 credit to purchases made after November 6th, 2009.
-To qualify for the credit, taxpayers must have entered into a biding contract to purchase by May 1st, 2010 and the closing should have occurred prior to July 1st, 2010.
-For purchases after November 6th, 2009, the phaseout of credit begins at $125,000 for individuals ($225,000 for joint filers).
-This extension eliminates the credit on property with a purchase price that is over $800,000.
-The credit for qualifying non-first time home buyers is limited to the lesser of 10% of the purchase price or $6,500 ( $3,250 for married filing separately).
-For military personnel, home purchase dates are extended by one year for those who have served outside the US for at least 90 days during the period beginning after December 31st, 2008 and ending before May 1st, 2010."

For more information call 1 - 888 - 263 - 1683 or log on to http://kktaxgroup.com

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K&K Tax Group is a National Tax Resolution Firm representing taxpayers domiciled in the 50 states before the IRS and State Tax Authorities.