Yesterday I had a great meeting with an accountant from a highly recommended accounting firm in Dracut. We were speaking about the new Federal Tax Incentive for first time home buyers and he shared with me information which I was not aware of.
Let's say you are a buyer who qualifies for the tax incentive of $7500 (that's a cash refund in hand) and let's say that you know you're going to buy something by July 1st of this year. You can choose to file an extension for your 2007 taxes so that if you close after April 15th you can still get the $7500 tax refund using your 2007 tax return. You do NOT have to wait until next year to get the credit!
The only way you can get the credit right away is if you file your 2007 tax return after purchasing the home. If you are purchasing the home between April 15th and July 1st (which is when the tax incentive is gone) then you will have to file a tax extension.
What else you need to know about the tax credit:
The tax credit is available for first-time home buyers only.
The maximum credit amount is $7,500.
The credit is available for homes purchased on or after April 9, 2008 and beforeJuly 1, 2009.
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
The tax credit works like an interest-free loan and must be repaid over a 15-year period.
As always, please seek professional help from a cpa before doing this.
No comments:
Post a Comment