| A number of bills have been passed in an effort to get | | | | comprise a good part of any down payment on a |
| the economy moving again. The American Recovery | | | | home. Wait - it gets better. |
| and Reinvestment Act of 2009 contains a tremendous | | | | A tax credit is great and all, but who wants to wait till |
| financial windfall for first time homebuyers. If you are | | | | they file their 2009 tax returns on April 15, 2010 to get |
| thinking about buying, here's how to get the windfall | | | | the money? Nobody! The government actually |
| quickly. | | | | anticipated this objection and is allowing you to claim it |
| What started the current economic mess? The | | | | on your 2008 tax return. Yes, the one due on April 15, |
| answer is found in the housing arena. Whether it was | | | | 2009. This raises a few issues for filers. Let's take a |
| mortgages going bad first or home prices falling, the | | | | closer look. |
| specifics are somewhat irrelevant because the entire | | | | I've Already Filed! |
| thing has turned into a mess. While it is great to rage | | | | What if you've already filed your 2008 tax return? Do |
| against the banks and AIG, the simple fact is we not | | | | you have to wait till 2009? No! You can file an |
| going to see a housing recovery until the housing | | | | amended 2008 tax return and claim the credit now. |
| market starts to recover. | | | | This should be done with the help of a tax |
| The housing market is like the food chain. If you don't | | | | professional. |
| have the little fish that comprise the bottom rung of the | | | | I'm Buying In May |
| pyramid, the entire process collapses. First time | | | | What if you're buying after the current tax deadline of |
| homebuyers are the equivalent of the little fish. The | | | | April 15th? No problem. Just file an extension with the |
| housing market is based on people moving on up. | | | | IRS. The proper form is 4868. It will grant you an |
| They buy a home, fix it up, sell, take the profit and buy | | | | automatic 6 month extension to file the returns. You |
| a more expensive home. If there is nobody to buy on | | | | can then include the first time homebuyer tax credit |
| the first run, then the market falls apart. | | | | when you prepare the return. |
| The American Recovery and Reinvestment Act of | | | | The first time homebuyers tax credit is a huge windfall |
| 2009 is designed to get first time buyers back into the | | | | for people looking to get into the market. The fact you |
| market. Frankly, it is a beautiful strategy. The Act gives | | | | can get the money on your 2008 return just makes it |
| first time buyers an $8,000 tax credit if they buy. The | | | | all the better. Make sure to take advantage of this |
| credit is for any home purchased before December 1, | | | | new provision in the tax code. |
| 2009. $8,000 is a nice chunk of change and can | | | | |