As you look around at all the government money that seems to be sloshing around, don’t you
wonder sometimes why none of it sloshes into your pocket?  Well I have news for you!  There
is a terrific tax break opportunity for you between now and April 30 2010.

You've all heard about the First Time Home Buyer Tax Credit (I think). This tax credit went
into effect in 08, and was recently extended to homes under contract by April 30 2010 and
closed by June 30 2010.  This terrific tax break has been widely used —probably by many of
 your children or grandchildren and their friends. First time home buyers (defined as those
that have not owned a home in the previous three years) can claim a tax credit if they go
 under contract by April 30 of this year, and close by June 30. Their tax credit is a lovely,
luscious 10% of the price of the home but no more than $8,000.

If taxes have already been filed for 2009 (unlikely but you never know) you don't have to
 wait until 2011 to claim the tax credit on your 2010 Tax Return — you simply can file an
amendment to your taxes. YES — you can claim the credit on your 2009 tax return even
though the closing occurred/occurs in 2010! This wonderful tax credit has been helping
keep many brokers in useful employment selling homes — myself included. Brokers get the
additional pleasure of putting people into their first homes which is so exciting an  fulfilling
for us.

But I am not sure that all of you have heard about the Current Owner Tax Credit as it
has received much less press. This Tax Credit is designed to encourage people who already
own homes to move on and purchase another home. It is popularly being interpreted as a
current owner of a home (defined as someone who has owned and occupied a primary
residence for a period of five consecutive years during the last eight years) needing to do
two things. One is sell their present home, the second is to buy a new home. However,
if you read the language of the IRS Ruling carefully it does not actually state that your
prior home must be sold. It simply says you must have occupied it for five consecutive
  years of the last eight, and that you buy a new home. If you buy that new home by
April 30, 2010 and close by June 30 2010, you too can get a tax credit of $6,500. There                                                                      
are some restrictions — the home you purchase can't cost more than $800,000 (sigh), income
limits are $125,000 if you are single, and $225,000 if you are married and there are some
other small print items out there.

If you are completely happy and settled where you are, then the $6,500 Tax Credit is certainly
 not going to make you move, nor should it! But if you are planning on putting  your home
on the market in Spring anyway, you might want to check your timing to see if you can take
advantage of this significant tax credit.

Both programs have some rules and regulations that I am not going to attempt to interpret
here — be sure to check with your local friendly CPA or tax preparer.   Note that copies of
  the Settlement Statement ('HUD') must be attached to your return — this limits the ability
to e-file tax returns, thereby somewhat slowing the refund process. But you might think it
is worth the wait!

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