Florida Homebuilder Centerline Homes | Real Estate Blog

The Closing Deadline Has Been Extended to Sept. 30 for Eligible Homebuyer Credit Purchases  

Update: IR-2010-80, July 2, 2010

WASHINGTON — Eligible taxpayers who contracted to buy a home, qualifying for the first-time homebuyer credit, before the end of April now have until Sept. 30, 2010 to close the deal, according to the Internal Revenue Service.

The Homebuyer Assistance and Improvement Act of 2010, signed by the President today, extended the closing deadline from June 30 to Sept. 30 for any eligible homebuyer who entered into a binding purchase contract on or before April 30 to close on the purchase of the home on or before June 30, 2010. The new law addresses concerns that many homebuyers might be unable to meet the original June 30 closing deadline.

The IRS reminds taxpayers that special filing and documentation requirements apply to anyone claiming the homebuyer credit. To avoid refund delays, those who entered into a purchase contract on or before April 30, but closed after that date, should attach to their return a copy of the pages from the signed contract showing all parties' names and signatures if required by local law, the property address, the purchase price, and the date of the contract.

Besides filling out Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, all eligible homebuyers must also include with their return one of the following documents:

A copy of the settlement statement showing all parties' names and signatures if required by local law, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.

For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties' names and signatures, property address, purchase price and date of purchase.

For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

Besides providing a tax benefit to first-time homebuyers and purchasers who haven’t owned homes in recent years, the law allows a long-time resident of the same main home to claim the credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. Homebuyers claiming this credit can avoid refund delays by attaching documentation covering the five-consecutive-year period:

Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
Property tax records or Homeowner’s insurance records.
There are three options for claiming the credit on a qualifying 2010 purchase:

If a 2009 return has not yet been filed, claim it on Form 1040 for tax-year 2009. Though these returns cannot be filed electronically, taxpayerscan still use IRS Free File to prepare their return. The returns must be printed out and sent to the IRS, along with all required documentation. The IRS urges taxpayers claiming refunds to choose direct deposit.

If a 2009 return has already been filed, claim it on an amended return using Form 1040X.

Whether or not a 2009 return has been filed, wait until next year and claim it on a 2010 Form 1040.

More details on claiming the credit can be found in the instructions to Form 5405, as well as on the First-Time Homebuyer Credit page on IRS.gov.

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Tips for Buying a Home Fast in Todays Real Estate Market

1. Start your home search online - If you're serious about finding a new home taking leisurely drives to find For Sale signs and open houses isn't the best approach to house hunting. Shopping for a home online will streamline your entire house hunting process. Searrching for a home online lets you browse thousands of homes for sale and narrow down your search by price, number of bedrooms, bathrooms, square footage and many other criteria. You can even find information about the area such as local restaurants, hospitals, schools and other points of interest near that home. When you use the Web to narrow down your options, you can create an efficient plan for touring homes in person.
2. Get pre-approved - Have your pre-approval letter in hand when you start house hunting. This allows you to make an offer as soon as you see a home you're interested in.  A pre-approval letter states your maximum purchase price, so you won't waste time looking at homes you can't afford.  Be sure to stay in constant contact with your lender throughout the homebuying process so nothing gets overlooked and the loan can close on time. We have several lenders available for questions or interest in obtaining approval.

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U.S. servicemen out of the country for 90 days (since 2008) may have an extra year to get the tax credit, up to $8,000, for buying a home.

The active-duty rule is not new. It’s part of the current tax credit law, though its use is limited. The qualification must be for “official extended duty outside the United States for at least 90 days after 2008 and before May 1, 2010.”

Should that be the case, however, the homebuyer has an extra year to buy a home. He or she has until April 30, 2011, to secure a binding contract, and until June 30, 2011 to close on the home. Other conditions such as a maximum $8,000 for first-time buyers and $6,500 for move-up buyers still apply.

For advice in regards to the tax credit consult a qualified tax advisor. The applicable IRS publication is posted online (PDF format) at: http://www.irs.gov/pub/irs-pdf/p3.pdf

Start off Right, Select the Right Plant For Your Location!

• Make a note of the type of soil, sunlight exposure and water conditions of the planting site before you shop. Choose plants that thrive under the conditions you noted.  Almost any plant will survive in your landscape if you plant it in the right place.
• Limit the number of plants that need a lot of water or care.
• Keep only as much grass as you directly use for recreation and other purposes. Plant beds and mulched areas use less water than grass.
• Remove invasive exotic plants so they don't steal water and nutrition from Florida-friendly plants.

Watering

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Here are 13 Tips that will reduce the energy and maintenance costs of your home over the long haul.

1. Check the insulation in your attic. If you purchased an older home with an unfinished attic take a look around up there. You should see at least six inches of insulation everywhere and more if you live in the northern parts of the US. If there’s inadequate insulation or the insulation you have appears damaged then install new insulation.
2. Air-seal your home. Look for any places where air may be leaking directly into or out of your home.
3. Lower the temperature on your hot water heater to 120 degrees.  This is the optimum temperature for your hot water heater. Most people do not utilize water that’s hotter than that, and thus energy used to keep the water that hot isn’t effective.
4. Toss a water heater blanket over that hot water heater. While most modern hot water heaters are well-insulated, some are insulated better than others and many older heaters aren’t insulated well at all. An investment in a blanket for your water heater will slowly and gradually save you money on your heating bill over time by keeping the heat in the water instead of letting it out.
5. Wrap exposed water pipes with insulation. Exposed hot water pipes lose heat as they move water from your heater to your faucet. Insulating them makes a two to four degree difference in the temperature of the water and also allows hot water to reach your faucet faster. Check the pipes into and out of your hot water heater first, as the first three feet out of the heater (and the last few feet of inlet water) are key. Use good quality pipe insulation for the job.

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