$8,000 Home Buyer Tax Credit…You Can Get it Now

Westcoe Realtors, Riverside California…If you are looking to purchase a home in this market, or have already bought a home this year, most buyers are aware that if the newly acquired home closed escrow prior to November 30, 2009, then it is very possible you are eligible for an $8,000 tax credit from the Federal Government.  This program was designed to encourage people to purchase homes, and while there are many details that determine a buyers eligibility for this credit (see our blog of March 16, 2009), the bottom line is that you may have $8,000 coming.

Of course, the $8,000 question is…how do you get it?      Well, there are two ways.

The first is to simply file for it when you prepare your 2009 tax return.  However you do your taxes, you simply apply for the credit (assuming you are eligible), and deal with it then.  For most people, this would  mean that your 2009 tax return would be filed in early 2010, and you would receive your $8,000 either as a reduction of what you owe, or as a check from the government…and if you were getting the check, it would probably arrive anywhere from 2-8 weeks after you file.

The second way to handle this, and get money now if you desire, is to file an amendment to your 2008 tax return, claim the credit, and the Feds will send you your check now….or basically now, since the processing time is the same…anywhere from 2-8 weeks.  This would let you have your money in 2009 instead of waiting until 2010.  The amount of money you would receive would be the same either way, it is simply a question of whether you want your money now, or later….your call.

(And oh, by the way, I realize we are not tax professionals, so no calls please.  If you have any questions, please check with your tax professional…but we have had many of our clients already receive their $8,000).

Good luck with what you decide to do, and for all you buyers out there, please remember…if you have not closed escrow by November 30, 2009, you will not get your credit.  As of now, there is no provision for any delays, no matter how small the delay may be, or whether the delay was your fault or not.  Close December 1, and you are out the $8,000….make it by November 30, and you are in.  There is conversation that this tax credit may be extended, but for now, that is all it is…conversation.  Time will tell on that, but until (or if) there is a change, November 30 is the deadline.

Take care, and as always, let us know if there is any real estate issue you would like us to chat about here.