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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