Correction: The dates of 4/9/08 and 6/30/08 were incorrect when this post was published on 9/15/08. These dates have been corrected and appear in red below.
As I mentioned in my post on August 4th, the New Homebuyers' Tax Credit gives a $7,500 credit to some people buying homes between 4/9/08 and 6/30/09. But beware, this is an interest free loan, not a true credit, and must be paid back over a period of 15 years.
Below are a couple of questions I have received about the new credit, including my responses.
Q - If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
A - Yes, but you must meet certain qualifications in both years. The law allows taxpayers to choose to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. There are some detailed rules on this which you should discuss in person with your tax preparer to make sure that you qualify.
Q - If I purchase a home in 2009, can I choose whether to report the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
A - Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 amounts, then you can choose the year that yields the largest credit amount. There’s also a new special website devoted just to this new credit.
