First Time Homebuyer Tax Credit Extended until June 30, 2010. November 6, 2009
On November 6, 2009, President Obama signed into law H.R. 3548, The Worker, Homeownership and Business Assistance Act of 2009, which extends the first-time homebuyer tax credit and expands it to include homebuyers who used the home sold or being sold as a principal residence consecutively for five out of eight years. The home buyer tax credit was due to expire on December 1. The extension runs until June 30, 2010. The tax credit applies to purchasers of manufactured homes, including both 'home only' and 'land/home' transactions.
First-time homebuyers may claim a credit of up to $8000 if their annual income is less than $125,000 for individuals, and less than $225,000 for couples. In addition, the plan would allow a $6,500 tax credit for move-up home buyers who purchase a primary residence if they owned their current home for at least 5 consecutive years in the previous 8 years. In an effort to combat fraudulent activities which have been reported in the news, the extension of the new home buyer tax credit legislation requires taxpayers to include a “settlement statement” with their tax returns as proof of purchase.
Manufactured housing 'home-only' transactions typically involve a retail sales contract instead of a HUD-1 settlement statement. MHI our national trade association, with strong assistance from the Arkansas and Florida Manufactured Housing Associations, engineered a floor colloquy among three key Senators on the Senate floor which clarifies that retail sales contracts for home only manufactured home transactions, in lieu of settlement statements, will be acceptable to the IRS as proof of purchase.