Could a $15,000 tax credit help you sell your foreclosure or short sale homes?
I'm NOT an attorney or a CPA so get the complete scoop from your tax and legal professional.
S.2734, The SAFE Act, gives a buyer a tax credit for buying a primary residence that is a short sale or a foreclosure.
A 'qualified principal residence' is an eligible single family home that is purchased to be a PRIMARY RESIDENCE. 'Eligible single family residence' is a single family structure that is one of these choices:
1. A new, previously unoccupied home, with a building permits that was issued (and construction began on or before September 1, 2007). THE HOME MUST BE PURCHASED DIRECTLY FROM THE PERSON WHO WAS ISSUED THE BUILDING PERMIT.
OR it could be...
2. A primary residence (owner occupied). The DEFAULT MUST HAVE OCCURED ON OR BEFORE MARCH 1, 2008.
OR it could be...
3. A foreclosure property owned by the mortgagor. The home ONLY QUALIFIES IF IT WAS A PRIMARY RESIDENCE (owner occupied) FOR A MINIMUM OF 1 YEAR PRIOR TO THE FORECLOSURE.
CERTIFICATION
The buyer must submit a certification (affidavit) by the seller that the residence meets the requirements.
The home must be the buyers PRIMARY RESIDENCE during the taxable year. The maximum tax credit is $15,000. You must spread out the deduction over 3 years BEGINNING WITH THE TAXABLE YEAR IN WHICH THE PURCHASE IS MADE. Purchases must be made after February 29, 2008 and before March 1, 2009.
This is a one-time only tax credit available for an individual or a married couple. Your spouse or life partner can not purchase another home and get this credit once you have claimed this credit together or separately. If 2 or more unmarried people buy a qualified property you can not get this credit if ANY of your PARTNERS have already used this tax credit for another purchase.
BASIS ADJUSTMENT
The basis of the home must be reduced by the amount of the credit.
IRS
Your tax professional will insert the term "Sec. 25E Credit for certain home purchases" relating to section 25D.
I'm not an attorney or tax professional so be sure to check with your favorite lawyer and CPA!
I hope this helps you close some more sales and provide a wonderful benefit to your buyers!
To buy or sell property in the Florida Keys and Key West call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com.
Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
www.ShowcasePortfolioProperties.com
www.myspace.com/topkeysrealtor
