OCR Text |
Show Tax Credit To Buyers Of Homes The Tax Reduction Act of 1974 provides a housing credit on the 1975 Federal tax return for those taxpayers who bought certain newly constructed cons-tructed homes last year, Roland V. Wise, District Director for the IRS in Utah, said today. A HOME built before March 26, 1975, which had never been occupied, is eligible eligi-ble for the credit. The other conditions which must be met are: -the house must be a principal prin-cipal residentce; the residence must be acquired and occupied as a principal residence after March 12, 1975, and before January 1, 1977; -THE TAXPAYER must enter into a binding purchase contract before January 1, 1976; -except in the case of self-construction, the taxpayers tax-payers must attach to their return, certification by the seller that the purchase price is the lowest price at which the residence was offered for sale since February 28, 1975. Form 5405, Credit for Purchase or Construction of New Principal Residence, must also be attached to the return. An individual who meets all the tests may claim a credit of 5 percent of the adjusted basis of the new residence. |