If you're planning to claim the $8000 federal housing tax credit and haven't started looking for a home, your clock is officially ticking. You must close on your new home on or before November 30th. In order to allow the standard 45-60 days to close, buyers should go under contract no later than October 1st (that's just 63 days away).
Remember a tax credit is very different than a tax deduction - a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income. Singles with incomes of $75,000 or less and couples with incomes of $150,000 or less are eligible as long as they are first time home buyers.
Buyers who qualify for the $8000 federal housing tax credit, may claim the credit on their 2008 taxes by filing form 5405 as soon as they close. Most buyers recieve the $8,000 credit within 60 days.
We are encouraging all of our clients who haven't done so already to schedule a buyer consultation as soon as possible and begin searching for a home immediately. Contact us today if you (or someone you know) want to take advantage of the fantastic opportunity. To learn more about the $8000 Federal Housing Tax Credit, contact us.
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