First Time Home Buyers Tax Credit

First time home buyers do not automatically go through a real estate agent to get the tax credit. Homes which are also available for “owner-to-owner selling.” First time home buyers who buy a home in 2009 will claim the credit on a tax return for 2008, do April 15, 2009 or a tax return for 2009, do April 15, 2010. The loan can not be received prior to the closing date. First time buyers will receive a $8,000-value credit. The advantage is that the credit is refundable, ensuring filers will see a complete $8,000 refund even if their overall tax bill was less than that amount.Do you want to learn more? Visit Element Homebuyers .

First-time home buyers buying new or resale homes of any kind are responsible for the tax credit. A home purchase must take place on or after 1 January 2009, and before 1 December 2009, to qualify for the tax credit.

Taxpayers who qualify for the first-time home buyer credit and buy a home this year (before Dec. this special feature can put money into the first-time buyer pockets right now rather than waiting for another year to claim the tax credit. Taxpayers are encouraged to consult with a professional to determine the tax consequences of a sale.

Taxpayers who file their taxes after receiving an extension can still file electronically, the IRS says. You can get your refund in as few as 10 days by e-filing and arranging for a direct deposit. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and a tax credit qualified purchase is not made, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

You may also be eligible to claim your 2009 payment on your 2008 tax filing. Participating in the tax credit program is simple. You claim the tax credit on the federal income tax return. Partial loans of less than $8,000 are available for certain taxpayers whose MAGI meets the phase-out limits.

FHA put up a mortgage letter stating how the plan was intended to work, and then took it down the same day. It didn’t come out the specifics that were supposed to come out within the week. FHA has a list of approved borrowers that can use the bridge loan product.