There is, indeed, an $8,000 tax credit waiting for all first-time homebuyers who buy their home between January 1st and December 1st of this year. So if you have never owned a home (or have not owned one in the last three years) you may qualify for this tax credit when tax time rolls around next year.
Just what is a credit? As opposed to a deduction (which is a reduction in the amount of income which is taxed), a credit is an actual reduction in the amount of tax you pay. If you owe less in taxes than the credit is worth, you get the extra back in the form of a check or direct deposit.
Here's an example: next February after the Super Bowl when you sit down to do your taxes you find you owe the IRS $1500 in total taxes for 2008. "Crap" you say, or something to that effect. Then you smack your forehead, say "Hey! I almost forgot! I bought a house last year!", sink back into your chair, and have another pretzel and swig of beer, smiling. Because you bought that house, instead of you paying the IRS $1500, the IRS pays you $6500! Sweet.
There are some conditions, though. Here's the actual Form 5405 First Time Homebuyer Credit which has everything you need to know about qualifying and filing for your $8,000.
GET YOUR REFUND NOW!
Here's what might be the most important thing: the 2008 Form 1040 has a line for the First Time Homebuyer Credit (line 69). So even if you already filed your 2008 return, you can file an amended form, include the $8,000 credit, and get your check right away! You don't need to wait until 2010.
Life is good, no?
Call or email me, and we can talk about how to best go about buying your first home so you can take advantage of $8,000 right away! (Not to mention great prices and low home loan interest rates!!)
507-317-0177 or jim@MankatoHomesOnline.com
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