Rob's Rant

Greetings, all!

Here is a brief description of the $8000 IRS Tax Credit for you.  Bear in mind I am not a Tax Advisor nor an Attorney.  Please Consult your Tax Advisor or your Attorney to see how these rules apply to your specific circumstance.

Here are the rules:

1) First-Time Buyers only.  NOTE: the mortgage industry (and for this program, IRS) defines "First-Time Buyer" differently than you do.  Anyone who has not owned a Primary Residence in at least 36 months falls into this category.  (Case in point: I had Clients this year who checked with IRS and found out they were able to receive the $8000 even though the wife still owned a home in another state that she had not lived in for over 3 years).

2) Home must be purchased between 1/1/09 and 11/30/09.  If you already bought a home this year, you may qualify.  If you haven't yet, and want to take advantage of the program, I suggest you GET STARTED TODAY.  Closings now are taking 45 days or more--watch for a crazy 2nd 1/2 of November as people try to beat this deadline (if you are a day late and record on 12/1/09, it will cost you the $8000).  Add Thanksgiving into the mix and, bottom line, you may not be too late but you are close.

3) You have a choice to take the $8000 in your 2009 Tax Return, or to file an Amended Return for 2008.  I have been told by my clients it seems to take about 60 days to get your money.  Not bad.  Consult your Tax Advisor to discuss which option is better for you.

That's pretty much it! 

Here are Links for you:

First the form itself:

http://www.irs.gov/pub/irs-pdf/f5405.pdf

And now the Guideline:

http://www.irs.gov/newsroom/article/0,,id=204672,00.html

Please post any questions and/or comments about this popular program.  I'd love to hear from you!  Or call or email me directly.