Correction to My Last Post – “There is still Time to Get the $8,000 Tax Credit This Year!”

I surely do apologize folks, but I made an error on my blog post last week.  My information source was from a local Builder’s Salesperson.  When I was asked my source, I went to find the Salesperson’s source for the claim.  He had heard it somewhere.  That’s how it goes.

Google was next.  I’ve searched high and low, but I could not find a deadline for amending 2008 returns to gain the credit.

Finally,  I checked with my CPA.  According to her, there is no specific deadline for amending your 2008 taxes to claim the tax credit.  Tax returns can be amended for up to 3 years.

That’s good news for all you first-time homebuyers out there.  If you close in August, you can still get your tax credit now.  However, my CPA always recommends you look closely at your expected income for 2010.  If your income has the possibility of dropping off, it might make more sense to wait to get the $8,000 tax credit next year to supplement your income.

Another error that has been reported our there is a deadline of June 30th to file the amended return.  That date is getting confused with the deadline that was imposed last year, for the $7,500 tax credit. It does not apply in this case.

The one current deadline to remember is November 30th of this year.  You must close on your home prior to that date.  If you close on December 1st, you will not receive the tax credit as the current law is written.

Article by Chad Underwood, Owner/Broker, chad@northtexashomefinders.com, www.NorthTexasHomeFinders.com

There is still Time to Get the $8,000 Tax Credit This Year!

That’s right, it’s not too late for first-time homebuyers to get their $8,000 tax credit.  If you close on a home by July 31st, you can file an amendment to your 2008 taxes to obtain the tax credit now.

The same rules apply, first-time homebuyers and those who have not owned a home in the last three years qualify.  The credit is 10% of the home value or $8,000 whichever is less.  The credit begins to phase out at a modified adjusted gross income of more than $75,000, or $150,000 for joint filers.

Do you need to close before July 31st to get the credit?  No.  Eligible buyers can still get the tax credit for purchases made prior to December 1st.  However, buyers who purchase after July 31st will file for the credit on their 2009 tax return.

Article by Chad Underwood, Owner/Broker, Chad@NorthTexasHomeFinders.com, www.NorthTexasHomeFinders.com.