HOT OFF THE PRESSES!! The IRS has just released a new form (Form #5405) to deal with the new $8,000 tax credit and it appears buyers WILL be able to claim the credit on their 2008 taxes if they close on a home prior to submitting their 2008 taxes (on or before April 15, 2009).
As always, it is best to consult a tax attorney or CPA for verification on whether the credit can be claimed on your 2008 taxes.
Based on reviewing the new form, it appears to me that a home purchased in 2009 will be eligible for this credit in the filing of tax returns for 2008's income (See "Homes purchased in 2009"). Thus, it may be possible that the $8,000 (Non-repayable) tax credit could more than offset the 3.5% investment necessary for down payment - even before the purchaser's first house payment becomes due. As with most closings in March, the buyer's first house payment would not be due until May 1st. Additionally, a first-time home buyer could put $2,800 down on a $80,000 home (3.5%), and receive the $8,000 tax credit after filing their 2008 Federal tax return before April 15th, 2009.
If you know someone who has not owned a home in three years, they qualify as a first-time home buyer and this tax credit would apply to them. Please forward this blog post to them or have them call me at 616-648-0800 or 616-791-0110 ext. 2121 or e-mail donaldrphelanjr@ameritech.net
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