Sacramento Real Estate Views

First Time Home Buyer Tax Credit

Ends November 30 – The Clock Is Ticking!

Buying your first home can be very stressful!  While getting an $8000 tax credit can make it easier, there is still a lot of stress involved.

Getting the credit, though, is very easy to do and I thought I’d outline the steps involved so there is at least one less thing to worry about. Here is what you need to do to get the credit:

1) Close escrow on your new home by Novemeber 30, 2009.

2) Make sure you’re qualified for the tax credit under IRS guidelines.

3) Decide which year to file.  Amend 2008 or file it with your 2009 return.

When To Apply

Since the tax deadline has already passed for your 2008 return, if you decide you’d like to apply after you close, you’ll have to amend your 2008 return.  If  you’ve filed for an extension of your 2008 return, then you can claim the credit when you file and submit your return.

Income Dropping Next Year?

If you’ve just purchased a home, you hope your income isn’t going to go down next year but that said, if you’ve got a situation coming up and think it might be more important and timely to get the credit next year.

If your income qualifies you for a partial credit now but next year you’re income goes down below where the criteria required for a full credit, it might be best to file next year.

The Next Step

Now that you’ve decided which year to apply for the credit, simply:

1) Fill out Form 5045 to determine the amount of your available credit

then

2) File your amended return for 2008 or wait until you’re filing for your 2009 return.

EASY!

Need help buying your first home?  Please consider us at your service.

Thanks for visiting!

No related posts.

Tags: first time home buyer tax credit

This entry was posted on Thursday, August 6th, 2009 at 10:57 am and is filed under Real Estate Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply