Filed Under Buying, Home Improvement · Tagged: 8000 tax credit · Print This Article
So, you’ve made your home purchase — now what? In talking with my CPA Mark Conrad, I asked about how exactly first-time buyers file for their 8,000 tax credit. He explained it in very simple detail:
“Federal Form #5405 is the only form that needs to be filed with the tax return. It is a half page long. It is very simple to fill out. The information needed to fill out form is as follows:
1) Address of home
2) Date Acquired
3) Purchase price of home
4) What your adjusted gross income is (on the 2008 return it was line 38 on form 1040)”
After calculating the credit – 10% of purchase price not to exceed $8,000 – the credit goes on line 69 under the “payment” section of form 1040.
The line numbers on the forms may change for the 2009 tax year. (These forms are not available yet.)
Signed closing documents or HUD 1 Forms should be supplied to your tax person to help fill out the needed forms. (This is the 2 page legal size statement you signed at closing.) If you are a client of AmyBSells, Amy will send you a copy in January, otherwise check your closing folder and it should be on the top of your documents.
“All supporting documents need to be saved for at least 7 years from date of filing a tax return,” Mark says.
Mark even sent me the form to exhibit how simple this really is. You can view or download it here. For more info on retaining Mark to get the best from your 2009 taxes, contact him via email at mconrad@fuse.net.
Using your 8,000 Tax Credit:
The best use of this FREE money is to put it back into your house. You can use it towards energy saving items and get an additional tax credit from a qualifying Energy Star upgrade.
Amy B’s “Best ways to use your $8000 Tax Credit:”
- High Efficiency or Dual Fuel Furnace
- Energy Efficient Windows and Doors
- Adding insulation in your attic and walls
- Put on a new light shingled roof with extra vents
- Upgrading your kitchen appliances
- Updating the Kitchen
- Updating the Bathroom
- Adding a deck or patio to your home
- Paint the exterior or interior of your home
- Update your electric
- Update your plumbing
- Build a garage or sturdy car port
This is how you can make the tax credit work for you and your home’s benefit. I do NOT recommend using the credit for vacations or television or car purchases. If the benefit came from purchasing a home, put the money back into your home. If you do the energy items, you will see a return in your monthly bills, as well as another tax credit in 2010.
As always, I work with trusted and honest contractors that work at great prices. If you need any recommendations for Electric, windows etc, give me a call anytime 513-377-3637, or email amy@amybsells.com.
Feel free to leave a comment with how you plan to use YOUR $8,000 tax credit!
More from AmyBSells.com:
Filing for the Energy Star Upgrade
Energy Star Upgrades can Earn You Money
Using A Residential Tax Abatement in Cincinnati
More from the web:
SmartMoney.com: Government pays for your upgrades with Energy tax credit
CBPCA.org (California Building Performance Contractors): A chart to help you understand the results of energy upgrades
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