Loudon County Home Buyers get Tax Credit thru Sept. 2010

If you are a Loudon County home buyer, you have probably already heard the news. The House members introduced a new bill, H.R. 5623, which was approved by 409 to 5 in favor of extending the deadline for new home buyers who would get the $8,000 tax credit. The old bill, HR 4213 was stalled due to a provision that included more unemployment benefits for approximately 1.7 million unemployed.

Loudon County home buyers are now able to have until September 30th to close on their home. This is good news not only for Loudon County home buyers but for the rest of the country as well. In addition, the hope is that the economy will be stimulated by this and that things will return to normal. The housing market and economy has been hard hit in the last several years.

The new bill also includes some provisions. One is the crackdown on those who are filing fraudulent claims. Several were found by the Treasury Inspector General for Tax Administration. Included among these were claims filed by prison inmates that were processed. The claims were approximately $9.1 million and there were some that involved more than one claim being approved for the same property. Claims for $17.6 were approved for homes that were not purchased within the specified time frame.

There were many instances of questionable claims, some even from IRS employees. The provisions included in H.R. 5623 are aimed at cracking down on the incidence of fraud and claims that are questionable will be examined more closely. The passage of this bill still only applies to those who had entered into a contract to buy before April 30, 2010. The extension is only for those who could not close on their homes by the June 30, 2010 deadline.

The homes that are eligible for the tax credit must have been purchased between November 7, 2009 and April 30, 2010. If you are a current home owner who purchased between these dates and owned a home in the past, it must have been your principle residence for five years in a row out of the last eight years. In addition, the last three years you should not have owned a home.

The tax credit does not have to be repaid as long as you live in the home purchased for three years. The home being sold before the three years is up will allow the amount received to be taken out of the sale and repaid. Up to $8,000 is allowed for those who have never before owned a home and $6,500 for those who have not owned a home in the last three years.

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