IMPORTANT UPDATE ON $8,000 TAX CREDIT!! HOT OFF THE PRESSES!!

By
Real Estate Agent

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

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Michigan
Groups:
Realtors®
Michigan Realtors
RE/MAX Active Rain Bloggers
Michigan Real Estate
Tags:
home selling
first time home buyers
real estate
buying home
economic stimulus

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
179,901
Jason Rose
123 ConEd LLC -- Michigan real estate continuing education - Farmington Hills, MI
www.123ConEd.com

Thanks for the great information, Don. I've completely lost track of everything tax-related with all of the back-and-forth on the stimulus package. Thanks for providing some clear and useful information.

Feb 24, 2009 11:53 PM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
49,477

Don Phelan

Five Star Real Estate
Ask me a question
*
*
*
*
Spam prevention

Additional Information