If you haven't read the details on the $7500 tax credit you have to take a look at this clear and easy to read explaination. It might surprise you!
http://www.federalhousingtaxcredit.com/faq.php#2
Did you KNOW...........?
The tax credit may be used by folks who have owned a home in the past. It is called a first time buyer program, but if you have not owned your own home for 3 years you may qualify.
The credit can be applied to your 2008 tax bill even if you purchase the home in 2009.
If you are going to claim the credit on your 2008 return, you may be able to adjust your W4 so that you start getting a fatter pay check right now! Of course the idea is that you will save the extra money to put toward your downpayment and closing costs. Be smart! Don't blow the windfall on popcorn and bubblegum. If you don't buy the home by mid 2009, you are going to have some 'splainin' to do. (and some hefty tax bills to pay)
Do consult your tax advisor! I am not a lawyer or an accountant. This is just my read on the information found at the link above.
I was very surprised!
Eileen's Green Team at Gateway
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