by NFS | Jul 2, 2010 | Archives
The deadline for the completion of qualifying First-Time Homebuyer Credit purchases has been extended. Taxpayers who entered into a binding contract before the end of April now have until September 30, 2010 to close on the home.
The Homebuyer Assistance and Improvement Act of 2010, enacted on July 2, 2010, extended the closing deadline from June 30 to Sept. 30 for eligible homebuyers who entered into a binding purchase contract on or before April 30 to close on the purchase of the home on or before June 30, 2010.
Here are five facts from the IRS about the First-Time Homebuyer Credit and how to claim it.
- If you entered into a binding contract on or before April 30, 2010 to buy a principal residence located in the United States you must close on the home on or before September 30, 2010.
- To be considered a first-time homebuyer, you and your spouse – if you are married – must not have jointly or separately owned another principal residence during the three years prior to the date of purchase.
- To be considered a long-time resident homebuyer, your settlement date must be after November 6, 2009 and you and your spouse – if you are married – must have lived in the same principal residence for any consecutive five-year period during the eight-year period that ended on the date the new home is purchased.
- The maximum credit for a first-time homebuyer is $8,000. The maximum credit for a long-time resident homebuyer is $6,500.
- To claim the credit you must file a paper return and attach Form 5405, First Time Homebuyer Credit, along with all required documentation, including a copy of the binding contract. New homebuyers must attach a copy of the properly executed settlement statement used to complete the purchase. Long-time residents are encouraged to attach documentation covering the five-consecutive-year period such as Form 1098, Mortgage Interest Statements, property tax records or homeowner’s insurance records.
For more information about the First-Time Homebuyer Tax Credit and the documentation requirements, please contact my office.
by NFS | Jun 24, 2010 | Archives
In Notice 2010-48, the IRS provides administrative relief for sponsors of defined contribution plans, such as §401(k) plans, that were affected by the storms and other severe weather in those counties in Alabama, Connecticut, Massachusetts, Mississippi, New Jersey, Rhode Island, Tennessee, and West Virginia declared Presidential Disaster Areas during the period from March 1 through May 31, 2010.
Notice 2010-48 extends the April 30 deadline for restating affected pre-approved defined contribution plans and, if applicable, for submitting determination letters to the IRS, to July 30, 2010.
by NFS | Jun 22, 2010 | Archives
A federal tax credit that aims to spur more research and development on the best ways to treat chronic diseases will soon be available to Massachusetts’ life science companies.
Starting today, the Therapeutic Tax Credit is a two-year credit that businesses with 250 or fewer employees can apply for through the US Treasury Department.
Senator John F. Kerry said the credit will help create jobs in the life, biological, and medical sciences sectors.
Robert K. Coughlin, president and chief executive of the Massachusetts Biotechnology Council, said the tax credits could help companies create lifesaving cures.
Eligible companies can receive a 50 percent tax credit for qualifying projects, and a total of $1 billion will be allocated.
Companies have until July 21 to apply. Contact my office for more details.
by NFS | Jun 17, 2010 | Archives
WASHINGTON — The Internal Revenue Service today issued regulations outlining the administration of a 10-percent excise tax on indoor tanning services that goes into effect on July 1.
The regulations were published today in the Federal Register.
In general, providers of indoor tanning services will collect the tax at the time the purchaser pays for the tanning services. The provider then pays over these amounts to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return.
The tax does not apply to phototherapy services performed by a licensed medical professional on his or her premises. The regulations also provide an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee.
The IRS and Treasury Department invite comments.
Send submissions to: CC:PA:LPD:PR (REG-112841-10), Room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044.
Submissions may be hand-delivered to: CC:PA:LPD:PR Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-112841-10), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW; Washington, DC,
Submissions may be sent electronically via the Federal eRulemaking Portal at http://www.regulations.gov/search/Regs/home.html#home (REG-112841-10).
by NFS | Jun 16, 2010 | Archives
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