The American Recovery and Reinvestment Act of 2009 gives single first time home buyers who make less than $75,000 and married first time home buyers who make less than $150,000 a tax credit of 10% of the value of a new home purchase up to $8,000. If you buy a home for $80,000 or more you get the full $8,000 credit. If you are married, but file separately you share the credit 50-50.
The first time home buyer credit is retroactive to a purchases beginning January 1, 2009. You can choose to take the credit on your 2008 or your 2009 taxes.
You can get up to $8,000 back from the IRS even if you haven't paid any taxes because it's a tax credit based upon the price you pay for a home.
"The new credit can get money in the pockets of first-time homebuyers quickly," said IRS Commissioner Douglas Shulman. "For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they've already filed their tax return."
File an Extension
If you are House Hunting Don't File Your Taxes Yet! Don't let your money sit in limbo with the IRS until March or April 2009 when you can get it back right away. If you are house hunting and haven't found the perfect one there is no need to worry. If you haven't filed your taxes you can choose to file a 6 month extension so that you can take the credit in 2008. want to take the credit in 2008 you'll need to file an extension. You can file your taxes electronically whether you do them now or you file for an extension. If you direct deposit you can have your money in less than 2 weeks.
File and then Amend
There is no reason to wait until 2009 for your $8,000 tax credit. You can file your taxes now, get your tax return and use the money as a down payment to buy a home. You file a 1040X to amend your taxes. Then you amend your 2008 tax return so you can get the $8,000 tax credit in 2008. File your taxes just like you normally do. Turbo tax is easy. H&R Block Tax Cut is more complicated.
Maya Thomas
Realtor®
Exit Realty Old Island Key West
1511 Truman Avenue
Key West, FL 33040
(305) 522-1398
www.ShowcasePortfolioProperties.com
MyRealPro@gmail.com
Maya M. Thomas, Realtor
Sellstate Island Properties
829 Simonton Street
Key West, FL 33040
(305) 522-1398
MyRealPro@gmail.com
www.ShowcasePortfolioProperties.com
Maya has sold 100% of the short sale properties she has listed for sale. Visit www.ShowcasePortfolioProperties.com or call (305) 522-1398 to learn more.
BA from Florida State University, Communication, Cum Laude, REO Realtor, Certified by the National Association of Realtors as a Short Sale and Foreclosure Specialist (SFR), Green Certified by the National Association of Realtors, National Association of Realtors, Florida Association of Realtors, Key West Association of Realtors, National Association of Real Estate Brokers, National Association of Hispanic Realtors (NAHRE) and the Asian Real Estate Association of America (AREAA).
