Government Gives Cash to First Time Homebuyers!

Don't Tax you
and
Don't Tax me
Tax the Guy behind the Tree!

Do you or family members qualify for the 1st time home buyer’s tax credit of $8000? If so here are some guidelines to follow:

1. This must be your first home or 3 years since previous ownership.
2. It must be your principle residence.
3. Need to live there for 3 years.
4. Can be an R.V., houseboat, mobile home, up to a 4 plex, and still qualify.
5. $8,000 tax credit but limited to 10% of the purchase price.
6. You must purchase and move in between Jan. 1, 2009 and Dec. 1, 2009.
7. Three friends can get the $8,000 maximum on one structure but must meet the maximum combined income limits.
8. There are maximum income limits of full credit of $75,000 – 150,000 for a couple.
9. A proportionate reduction of tax credit over these income amounts until the tax credit is disallowed at 95,000 and 170,000 for a couple.
10. US based not overseas.
11. If building new – move in before Dec. 1.
12. A consignee or parent assistance is okay – as long as buyer is on the hook financially and it’s the principle residence.
13. On multiple units – the proportionate value to the 10% rule applies (but see Wayne)
14. The Tax Credit is not assignable
15. Avoid refund anticipatory loans – BEWARE
16. File for tax credit with IRS form 5405
17. You can file for the refund or credit by amending your 2008 filing or in your 2009 tax filing.