Housing Assistance Tax Act of 2008

[valley_man0505]

I have recently become aware of the tax rebate that is available for first time homebuyers if a primary residence is purchased prior to July 1, 2009.  It says that this rebate can still be applied to your 2008 tax return as long as the home is purchased by July 1.  How does this work, though, if you buy after the April tax deadline?  It said something about ammending your tax return (or, waiting until the next tax year to claim it, but I would want it ASAP--I would be worried that I would get screwed out of it somehow if I waited til next year).  How do you ammend a tax return?  I know this may be more of a tax question, but I would assume that some of the mortgage gurus out there must have an idea how this would be done.

Also, do you still qualify for this if you use an FHA loan?  I have not seen any reason why not, but you never know.  Also, is there any chance that this could disappear due to all the financial crises going on right now?  Or, since it has already been passed, is it safe?

[Anonymous]

Dont know anything about tax act but as far as amending a tax return you can do it at anytime really. My dad amended his 2000 returns last year. Of course he works for the IRS for almost 20 years now and knows what he is doing. I know turbo tax even gives the option on it first screen it as if you want to amend a return

[JuliaTN]

I don't know anything about amending returns (but I do understand that you can take the credit on your 2008 return even if you purchase the house in 2009 - just don't know by what mechanism they're doing that). There are no restrictions about types of financing as long as you are a first-time homebuyer. Both spouses, if married, cannot have owned a house in the last 3 years even if only one spouse is going on the loan/deed.

Also, this is not a true credit in the sense that it must be paid back over the next 15 years or at closing if the house is sold before 15 years. Still a good deal, essentially an interest free loan that doesn't go on your credit report =}

[Anonymous]

I am a certified Tax Preparer in the state of California.

I have a interest in this refundable credit myself becuase I paln to buy a home during this timeframe.

To amend your tax return it is pretty easy and the form (1040X) is avail on rs.gov.

You can also get an extention on your 2008 taxes by filing a form.

The credit for this will be reported on form 5405 which has not yet become avail to tax preparers but will be avail soon.

You can call your local tax prepared to ask cost for amended tax returns and extentions. Most places charge under $100. Also see irs.gov the information is in the new section. Hope this helps

Message Edited by receivingthepromise on 10-06-2008 02:31 PM

Message Edited by receivingthepromise on 10-06-2008 02:32 PM

[Anonymous]

---

@JuliaTN wrote:

There are no restrictions about types of financing as long as you are a first-time homebuyer.

---

There are restrictions about the type of financing, but I believe FHA is okay.

You cannot take the credit if "Your home financing comes from tax-exempt mortgage revenue bonds."  WHEDA loans are excluded for WI folks :/

More info here - http://www.irs.gov/newsroom/article/0,,id=186831,00.html

[itsjustmeibe]

Also, there are income phase-outs similar to tax rebate checks and everything else uncle sam offers.