Monetizing the $8000.00 tax credit

Monetizing the $8000.00 tax credit

The clock is ticking to have the $8000.00 tax credit available at the time of settlement will make a big difference to the first time buyer that needs their cash for their down payment and or closing costs.

At the mid year meeting NAR and the federal government agreed to make this a reality. Since the $8000.00 Tax Credit is a real credit and not a loan it is a terrific opportunity for a home buyer that has not owned in the past 3 years.

Since the buyer must close by December 1, 2009, the monetizing of the credit to give the maximum benefit needs to occur quickly. The first time buyer is the first in a line of transactions. Their entrance into the market unlocks a chain of contingent contracts.

For those that have already purchased this year and are entitled to the credit they can amend their return and get the credit now. The form needed is Form 1040X available at http://www.irs.gov/