Tuesday, July 14, 2009

Less Than 3 Months Left to Claim Up to $8000 from Your Rich Uncle

Have you been looking for a home? Thinking about it? It is your first home (or have you not owned a home in 3 years)?

STOP! Stop looking & considering. Start FINDING one.

If you are a first time homebuyer, you must close on the purchase of your first home by the end of November* to earn a tax credit of up to $8000. Note that this is a CREDIT not a deduction. If you are expecting a refund, it will increase your refund by the amount of your credit. If you will owe taxes on your 1040, your taxes will be reduced by the amount of the credit and you will receive a refund if due. Before I continue, as with any tax advice here or from any source that is not your trusted professional, you should review this with your trusted professional to apply to your situation.

First time home buyers (and those that have not owned a home in the last 3 years) can claim a tax credit of 10% of the purchase price of their primary residence. The maximum credit is $8000 and there are income limitations on who can claim.

MORE EXTRA GOOD NEWS - If you buy your home in time to claim this credit, you can amend your 2008 tax return even though your purchase may be in 2009! This will get the money in your hands sooner!

*So, why less than 3 months left if the clock stops at the end of November? Because you must CLOSE your purchase by then. It generally takes 30 days from offer to close (although we can perform faster in many cases).

Let me know if you have any questions that I can help with.

Tim Epps

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