I've been waiting to hear back from CPA for some clarification on how the new Home Buyer Tax Credit can be used, and I finally got confirmation today... There's a twist to this new credit that EVERY HOME BUYER NEEDS TO KNOW ABOUT. MAKE SURE YOU'RE TELLING YOUR CLIENTS!
Home Buyers Incentive - NEW TWIST
About a week ago, I told you about the new version of the Home Buyer Tax Credit, and at that time I had an idea of how this could REALLY be a benefit to someone thinking about buying a home, especially if he/she didn't have a lot of cash for down-payment or closing costs. I wanted to make sure I had correct information though, before posting it here for all the world to get excited about... I was waiting on my CPA to get clarification on the program.
So here's the scenario: If you meet the qualifications for the Home Buyer Tax Credit (click HERE for more details), you can claim the credit on your 2008 income tax return, EVEN if you haven't bought a house yet! Yep, that's right, you can claim it and get the money NOW, then put it toward your down payment and/or closing costs.
The other biggie is that this credit doesn't have to be re-paid. It's free money for home buyers that meet the criteria!
OK, so here's my disclaimer; this info came from my CPA, Rusty Hale. I'm putting this info out here for you to take advantage of, but please investigate and make sure it will work for you. Get advice from your CPA before taking any action, just to be sure you're not going to get jammed up somehow. One bad scenario I've though of is if you were to take the credit, get the money, then you can't qualify for a mortgage. My guess would be that you'd have to pay that money back, but again, CHECK WITH YOUR TAX PROFESSIONAL TO BE SURE! If you don't have one, call Rusty @ 405.330.6000.
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New Media Marketer, Listing Specialist, and lead member of the Hukill Group, a residential Real Estate Team based in Edmond, OK specializing in existing and new homes in Metro OKC, Edmond, and beyond.
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OK my friend, this rocks. I'm going to link to you and use your material. :)
kk
KK, I'm glad you enjoyed it. I'm thinking others just didn't read far enough to see the GOLD in this information! ANY agent who works with buyers should be using this to truly do what the stimulus package is supposed to do... get people who might not otherwise be buying off their duffs and signing purchase contracts!
It is such a HUGE benefit to first time buyers. We really need to get the word out! I'm using my Bull Horn!
kk
p.s. thanks for putting your thinking cap on!
I'm doing the same... thanks for helping me get the word out!
Hi! you help me out solving a question that i had.. i m planing to close my house in 2 months but i need to send my taxes before that and i would like to use the $8,000 tax credit for my downpayment. on the 5405 form it says date of purchase and adresss but i dont know what to put there if i haven't closed yet.
please let me know if you know... i know people has done it, i just don't know how.
thank you so much for your help.
Pamela, I'm glad to see you're taking advantage of this. I'm checking into the exact steps that must be taken, and waiting again for clarification from my CPA. As soon as I find out more, I'll post it here. Thanks for your question.
Hi Ryan, this is amazing news to me. Have you heard anything further on the steps that need to be taken. Thanks for getting this out. Wow - what a windfall IF it can really be worked!
I'm still waiting for EXACT steps to be taken, from my CPA. I'm hearing conflicting things at this time, such as one of my lenders telling me he's checked with his underwriters and they say there's absolutely no way the FHA will let this happen, so until further notice I don't have much helpful info. I'll update this as SOON as I have 100% verified accurate information to pass along.
Ryan: A couple of additional ways for buyers to come up with a down payment are 1) get a loan from a family member for the down payment. FHA loans allow the down payment to come from family members. Then after the buyer closes he can amend his 2008 tax return and repay the loan to the family member. and 2) buyers can increase their exemptions so less money is withheld from their paychecks. Then they can file for the tax credit with their 2009 tax return. The buyers just need to make sure they do not change their exemptions to net more than $8,000 which is the tax credit amount.