I’ll make the disclaimer up front that I am not an accountant.
All of this information should be verified with your personal tax professional before you take action.
The IRS has stated that you can claim the $6500 or $8000 tax credits on your 2009 taxes, even if you purchase a home in 2010! (Review the reference material below.)
Think about that.
You’re a qualified first time home buyer. You go out today. Find a house. Write a contract. Close next month.
Then, you file your taxes 2009 (claiming your $8000 credit) with whatever flavor tax preparer you prefer.
You get a refund check a few weeks later including your refundable tax credit! …ka-ching!
To those planning to buy something this Spring,
Before you get ambitious with filing your taxes right away, talk to your accountant about your home purchasing plans and see if you can cash in on that $8000 ($6500 for repeat buyers) this Spring.
To those not planning to buy something this Spring,
You’re missing out!!!!! The general consensus is that Congress will let the tax credit expire this time.
Check it out. You can get that money this Spring. If not, you’ll be waiting a whole year for it!
$8000 today is worth a whole heck of a lot more than $8000 a year from now.
Think about it.
Kenny Silva
Real Estate Consultant
Silva Real Estate Group
www.thesilvagroup.net
Cell:(615)336-6638
Office:(615)425-3600
Fax:(615)690-8721
Email:kenny@thesilvagroup.net
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Keller Williams Realty
30 Burton Hills Blvd Suite 175
Nashville, TN 37215
Straight from the National Association of Home Builders
http://www.federalhousingtaxcredit.com/faq1.php#21
If I’m qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?
Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year’s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.
Straight form the Internal Revenue Service:
http://www.irs.gov/newsroom/article/0,,id=206291,00.html
Q. Which home purchases qualify for the first-time homebuyer credit?
A. Any home purchased as your principal residence and located in the United States qualifies. You must buy the home after April 8, 2008, and before May. 1, 2010 (with closing to take place before July 1), to qualify for the credit. For a home that you construct, the purchase date is considered to be the first date you occupy the home.
Normally, taxpayers (including spouse, if married) who owned a principal residence at any time during the three years prior to the date of purchase are not eligible for the credit. This means that you can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase. However, a long-time homeowner can also get the credit for a qualifying replacement home purchased after Nov. 6, 2009. To qualify, you must have owned and used the same home as your principal residence for at least five consecutive years of the eight-year period ending on the date you by your new principal residence.
If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 or 2009 income tax return. For an eligible purchase in 2010, you can choose to claim the credit on either your 2009 or 2010 return. (11/19/09)
Kenny Silva
