This post is a follow up to my other posts on the first time home buyer tax credit in order to clarify some details:
The credit is actually for up to 10% of the home’s price. In the north metro Denver area however you could barely buy a mobile home (that’s been purged and considered real estate) for less than $80,000 so I just assume that basically 100% of you will be able to claim the $8,000.
If you are married, neither one of you can have owned a home within 3 years prior to buying this home (and claim the first time home buyer credit).
You must live in the home for 3 years after you buy it.
If for some reason you only owe $1,000 on your taxes, and you claim the $8,000 credit, you will get your $7,000 tax credit back from the IRS at the end of the year. If you’ve never used an accountant to figure your taxes, this might be a good time to hire one just to make sure you get everything right. You can even deduct their fees from your taxes!
If you bought a house this year you can amend your 2008 taxes and claim the credit now. Again, this might be a great time to hire an accountant. As they continue to find more fraudulent claims there may be pressure to put those who claim the credit at a higher risk for audit. I don’t know this for certain, I’m just speculating!
If you buy the home from your parent or grandparent, child or grandchild, spouse or your spouse’s immediate relatives you can not qualify for the credit.
Speaking of getting in trouble with taxes, you will have to furnish proof of your home purchase which you can talk to your accountant about or the folks at the title company when you close on the home.
I love helping first time home buyers so if you have any questions or would like help viewing an available home please don’t hesitate to contact me at 303.887.1883 or beth@bethskinner.com.
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