Atlanta Homebuyers $9,800.00 Federal TAX Credit: Use the $8,000 Federal Tax Credit RIGHT NOW as an FHA Down Payment OR GET A TAX REFUND! Part 3 in a series
Federal Tax Credit Atlanta Homebuyers $9,800.00 Federal tax Credit: Use the $8,000 Federal Tax Credit RIGHT NOW as an FHA Down Payment OR GET A TAX REFUND!
Part 3 in a series
Let’s assume you have purchased a qualifying home as described in my previous post Atlanta Homebuyers $9,800.00 TAX Credit: Who Qualifies? Part 1 in a series
Secondly, you now know how to apply the tax credit to your 2009 Federal Tax return as described in my previous post Atlanta Homebuyers $9,800.00 TAX Credit: How the FEDERAL Tax Credit Works? Part 2 in a series
How to Use the $8.000 Federal Tax Credit RIGHT NOW!
Re-file your 2008 taxes RIGHT NOW and get a refund.“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? Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.”
Note: See your CPA for tax advice. Just wanted to let you know an option exists that may work for you. I am not a CPA and this stuff is technical. BUT, you have to ask the right questions so your CPA will know what to look for in analyzing your tax needs.
Use the TAX CREDIT IMMEDIATELYT as a DOWN PAYMENT on FHA HOMES!”
The Secretary of Housing and Urban Development has announced that HUD will allow “monetization” of the tax credit. What does that mean? It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses. Under the guidelines announced by HUD, non-profits and FHA-approved lenders will be allowed to give home buyers short-term loans of up to $8,000.
The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer term loans secured by second mortgages. Housing finance agencies and other government entities may also issue tax credit loans, which home buyers may use to satisfy the FHA 3.5 percent downpayment requirement.In addition, approved FHA lenders will also be able to purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5 percent downpayment that is required for FHA-insured homes.
More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization (pdf) is available at the NAHB web site.
The English Team and Sally English look forward to assisting you with your Atlanta Home Search. Contact us for excellent home buyer advice. 