Tax Tips

• The 2008 credit does not have to be paid back and is available through your 2008 tax filing on homes

purchased before December 1, 2009.

• If you purchase your home before December 1, 2009, but have already filed your 2008 tax return, you can

amend your 2008 tax return to get the credit.

• Remember, if you owe back taxes the IRS will keep your credit and apply it to those back taxes.

• Under the new rules, a first time homebuyer is someone who hasn’t owned another principle residence in the

United States within the past 3 years.

• If you qualify as a first time homebuyer and are about to marry, someone who does not qualify as a first time

homebuyer purchases your marital home before the wedding, you will get the full credit even if you purchase the home in both names. Waiting until after the wedding will result in you losing the credit.

• Beware: Treasury inspectors are looking at the past three years of tax returns for those who claim the first

time home buyer credit. They are checking to see if people claiming the credit had mortgage interest, property tax deductions, points, and other homeowner deductions in the last three years. (Remember you must not have owned a primary residence in the last three years to qualify.)

Joe

Learn more about Joe DePetris, Jr., and IBO tax return preparation and tax issues at IBO Bookkeeping 101.

Find more Tax Tips for IBOs from Joe DePetris, Jr., CPA.

This article is provided as an educational resource for your guidance, and is strictly informational. It does not constitute legal, accounting, or other professional counsel. Nothing included herein implies a recommendation by the author, the IBOA International, or Amway Global, of any course or method of regulatory compliance. Readers and users who intend to take, or refrain from taking, any action based on information contained herein should first consult with their qualified tax advisor, preferably a C.P.A., or appropriate regulatory authorities.