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Lawrence Kansas Real Estate and Lawrence Kansas Homes
New Extended $8,000 First Time Buyer Tax Credit and $6,500 Buyer Tax Credit

How to Get the Extended Home Buyer Tax Credit

All the Realtors at Realty Executives - Hedges Real Estate are very happy that the home buyer tax credit was extended and expanded to also help home buyers who owned their previous home for 5 years or more.  We would love to help you find your next Lawrence, Kansas, Eudora, Kansas, Baldwin, Kansas, Douglas County Kansas, Northeast Kansas, or Olivia Farms in Junction City, Kansas home.

If you are thinking about buying a home in Kansas, then please talk with us about the purchase of a home in Kansas in order for you to take advantage of the Extended Home Buyer Tax Credit. Here's what you have to do to get your benefit:

  1. Close on your home purchase between the date President Obama signs the bill and April 30, 2010, or have a binding written contract by April 30, 2010 and close by July 1, 2010.
  2.  Decide whether to: 

    • apply the credit to your 2009 tax return, filed on or before April 15, 2010;
    •  file an amended 2009 return; or, 
    • apply the credit on your 2010 return, filed on or before April 15, 2011.
  3. Attach documentation of purchase to your return.

Documentation of Purchase

Details concerning the precise documents required to confirm your purchase have not yet been released. When this information becomes available, we will include instructions and links to the appropriate forms.


When to Apply the Credit

Buyers purchasing homes on or before December 31, 2009 may claim the credit on their 2009 tax returns.

Buyers purchasing in 2010 will have the option to:

  •  Claim the credit on their 2009 return, even if the purchase is completed after December 31, 2009;
  •  File an amended return for 2009 if their purchase is completed after April 15, 2010; or,
  •  Claim the credit on their 2010 tax returns.


Applying the Credit to Your 2009 Taxes


You will need to do three things to claim the credit on your 2009 tax return:

  1. Fill out Form 5405 to determine the amount of your available credit;
  2. Apply the credit when you file your 2009 tax return or file an amended return;
  3. Attach documentation of purchase to your return or amended return.

Consult your accountant or tax preparer for details to be sure that you qualify.


Document
Highlights of New 2009 to 2010 Real Estate Home Buyer Tax Credit
Document
Answers to questions about the 2009 to 2010 Buyer Tax Credit for 2009 to 2010
Document
Extended Home Buyer Real Estate Tax Credit Details For First Time Buyers and Buyers who previously owned a home for 5 years or more
First Time Home Buyer Tax Credit Info - Expires Nov. 30, 2009

The February 2009 Economic Stimulus Package includes an $8,000 tax credit for home buyers who do not currently own a home and who have not owned a home in the last 3 years.  The document to the right explains the details and the difference between this program and the previous $7,500 home buyer tax credit.  This credit is available for home buyers who buy a home in Lawrence, Kansas and the surrounding area.  Talk to one of our Realtors for details when searching for your Lawrence, KS area home.


Document
$8000 tax credit for buyers 2009
2009 Home Buyer Tax Credit.  This new stimulus bill offers an $8,000 tax credit to buyers of their principal residence on or after January 1, 2009 and before December 1, 2009.  This credit is applicable to homes for sale and purchased in the Lawrence, Kansas and Douglas County, KS area.  This credit does not require repayment if the buyer owns the home for at least 3 years.  The credit can be claimed on the buyer's tax return to reduce the purchaser's income tax liability.  If any credit amount remains unuses, then the unused amount will be refunded as a check to the purchaser.  See your tax preparer for details.

This Home Buyer tax credit is an improvement over the previous tax credit offered in 2008.


Home buyers in Lawrence, Kansas and the surrounding area will be glad that some improvements were made to the rules enacted in 2008.  This purchase of real estate must be the buyer's principle home residence and the buyer must not have owned any real estate in the last three years.  Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser. In brief, these are the changes made:
  • The credit amount is increased from $7500 to $8000.
  • The credit continues to apply only to first-time homebuyers.
  • Changes are effective for purchases on or after Jan 1, 2009 and before Dec 1, 2009.
  • 2009 purchasers can make an election to claim the credit on their 2008 tax return.
  • The credit is refundable. The amount of the refund is computed as part of the 1040 tax return filing.
  • The unpopular repayment feature of the 2008 version is eliminated for 2009 purchasers. Unfortunately, eligible 2008 purchasers will still be required to repay the credit.
  • While the repayment is eliminated for 2009, any credit that is taken for 2009 will be recaptured and paid to the IRS from sales proceeds if the residence is sold within three years of the date of purchase.
  • Purchasers who finance their 2009 purchases with funds from a state/local housing bond authority will be eligible for credit.

Talk with one of the Realtors with Realty Executives - Hedges Real Estate to find Homes For Sale so that you can obtain this credit.  See your loan officer and tax preparer for details.


Details and Frequently Asked Questions about the $8,000 Tax Credit directly from the IRS - Click Here


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Serving Lawrence & Northeast Kansas Since 1972.