December 9, 2009 THE VILLADOM TIMES III • Page 9 A new law that took effect last month extends the firsttime homebuyer credit five months and expands the eligibility requirements for purchasers. The Worker, Homeownership, and Business Assistance Act of 2009 extends the deadline for qualifying home purchases from Nov. 30, 2009 to April 30, 2010. Additionally, if a buyer enters into a binding contract by April 30, 2010, the buyer has until June 30, 2010, to settle on the purchase. The maximum credit remains at $8,000 for a first-time homebuyer (a buyer who has not owned a primary residence during the three years up to the date of purchase). The law also provides a long-time resident credit of up to $6,500 to others who do not qualify as first-time homebuyers. To qualify this way, a buyer must have owned and used the same home as a principal/primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new primary residence. For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 First-time homebuyer credit extended to April 2010 tax returns. A new version of Form 5405, First-Time Homebuyer Credit, will soon be available. A taxpayer who purchases a home after Nov. 6 must use this new version of the form to claim the credit. Likewise, taxpayers claiming the credit on their 2009 returns, no matter when the house was purchased, must also use the new version of Form 5405. Taxpayers who claim the credit on their 2009 tax return will not be able to file electronically. A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may to use the older version of Form 5405. The new law raises the income limits for people who purchase homes after Nov. 6. The full credit will be available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify. For homes purchased prior to Nov. 7, 2009, existing MAGI limits remain in place. The full credit is available to taxpayers with MAGI up to $75,000, or $150,000 for joint filers. Those with MAGI between $75,000 and $95,000, or $150,000 and $170,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify. Several new restrictions on purchases that occur after Nov. 6 go into effect with the new law: Dependents are not eligible; no credit is available if the purchase price of a home is over $800,000; and a purchaser must be at least 18 years old. Members of the U.S. Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011 and settle on the purchase by June 30, 2011. This special rule also applies to certain other federal employees. Visit the First-Time Homebuyer Credit page on IRS.gov. NEW CUSTOM DISCOU ER NT % 15 OFF It’s Time To Clean Your Gutters! Woodwork • Power Washing Roofing & Gutter Cleaning Exterior & Interior Residential & Commercial Services Free Estimates • Fully Insured Call Walter at 201-674-0725 12-9-09 janine AAAPainting3x3(12-9-09) 3 x 3” HUGE OFF 1/2 ll Gold s Or ig i na ic e l Pr Adrian Jewelers CUSTOMER N IO APPRECIAT Look for our Weekly Specials every week thru Christmas! North Jersey Food Bank Donate canned and boxed food items and earn extra points. EVERY ITEM ON SALE! SALE! 1/2 OFF All S te Or ig A celet Bra WIN A FABULOUS PRIZE! No purchase necessary. No luck involved to win. 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 14Kt .50 ct Diamond Pendant Toshiba Laptop 26” LCD HDTV Flat Screen TV Ladies Diamond Watch Digital Camera w/Memory Card Fountain Spa Gift Certificate Brick House Gift Certificate Angel Tips Gift Certificate Charles Hubert Pen Bath & Body Gift Basket Brac rling elets i na l P r ic e F % OF 35 en’s Jewreielrsy o All MAccess & O al r ig in P r ic e Mon-Fri 9:30-5:30 Thurs 9:30-7:00 Sat 9:30-5:30 Closed Sunday Holiday Hours Beginning Dec. 14, Open till 8:00pm 35 % OFF A ll D ia Or ig i na l Pen mond dant s P r ic e 637 Wyckoff Ave • Wyckoff, NJ • 201-891-5588 FREE ENGRAVING • FREE LAYAWAY WE BUY GOLD!!! All major credit cards accepted