Did you know that if you are a first time buyer (or anyone who hasn’t had a mortgage in the past 3 years) you can buy a house now and get your tax credit now? 

Here’s how it works…Eligible homebuyers who purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occured on December 31, 2008.  That being said you can claim the credit in your 2008 tax return. 

You have several filing options:

  1. If you close escrow between January 1, 2009 and April 15, 2009 you can claim the $8000 credit on your 2008 return that is due April 15th. 
  2. You can extend your 2008 income tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but you must file for the extension.) See IRS.gov for instructions.
  3. If you have already filed your 2009 return, you can file an amended 2008 tax return on form 1040X which is available at IRS.gov or through your tax providor.
  4. Or you can just wait until you file your 2009 return, but why would you if you can get the money now and use it to fix up your new house.

The best part is that you don’t have to pay the money back unless you sell the property before you have lived there for 3 years.  (Some exclusion apply to this as well.)

What are you waiting for???? Phenomenal prices, great selection, FHA mortgages with only 3.5% down, historically low interest rates and $8000 in tax credit.  It doesn’t get much better than this.