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IRS Tax Relief Help for 2009

Friday, January 9, 2009 posted by Tommi Crow

The IRS is offering some much needed tax help in 2009.  The Tax Relief Programs, which address real estate matters are outlined below.

  1. 1.  First Time Homebuyer Tax Credit:  People who recently bought a home or those who are considering buying one should pay close attention.  The program, which could be worth $7500 to those qualified, defines “first time buyer” as anyone who has not owned a primary residence in the past three years.   If this is you, check out the IRS program details.
  2. Offers in Compromise on Home Values:  An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS.  An OIC is a viable option for taxpayers experiencing money difficulties, as the agreement settles a tax debt for less than the full amount owed.  Under IOC guidelines, the IRS realizes that real estate valuations may not be accurate.  In instances of financial hardship, where the accuracy of local real estate values are in question, the IRS will give a new review of the information before determining their final offer.
  3. Real Estate Tax Deduction:  Taxpayers can claim an additional standard deduction, based on state and local real estate taxes paid in 2008.  The maximum deduction is $500 per person or $1000 for joint filers.
  4. Workouts and Foreclosures:  For most homeowners, debt forgivenness is now tax free.  Homeowners can exclude forgiven debt on their principal residence if their loan was for owe less than $2,000,000.  The limit is $1 million for individuals and married couples filing separately.

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