More information for the $8000 First Time Home Buyer Tax Credit that has been extended, expanded, and modified. I wrote about most of the changes on my previous post about the Tax Credit, so read that for a description of the most common circumstances.
Within the new law, there are some other changes that some people might want to be aware of in case it effects you.
All active members of the military have a different deadline to follow. If you were/are active military overseas for more than 90 days in either 2008 or 2009, your extension goes through April 30, 2011 instead of 2010. You get one extra year to buy a house!
You can now claim the credit if you are obtaining Seller Financing even if the Seller retains title to the property. This would include a land contract or a contract for deed. In order for this to work, the IRS would want proof of several things including the ability to show possession, proof of paying property taxes, holding insurance on the property, and a few other things.
With the new $8000 First Time Home Buyer Tax Credit law, you must actually show proof that you purchased a home, fancy that! It's hard to believe, but the United States Government was issuing tax credits to people solely on their word that they bought a house. No proof was required, just the word of honest Americans... and there's a reason this was modified as even a four year old tried to file claim to the tax credit!
It was rumored with the previous law that you could claim the tax credit prior to closing, but you absolutely CANNOT do this! The IRS has begun prosecuting people who claimed the credit prior to closing or without actually buying a property.
As mentioned, the above are special circumstances and will not effect the majority of people, but it's always good to know for the just in case.
Email or call me with further questions and don't let this last chance at a tax credit slip past you. I highly doubt it will be extended again as the government just doesn't have anymore funds to be giving out.
**Are You Packed Yet?**
Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way.
** #1 Agent in my Office for all of 2008 **
Copyright© 2009 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* The $8000 First Time Home Buyer Tax Credit - Extended, Expanded, and Modified - Part 2 * was first published on donnahomesblog.com