There’s still a lot of questions about the $8,000 first-time home buyer’s tax credit this year, so I thought I’d review some of the questions and misinformation I’ve been hearing.
The $8,000 tax credit is available if you purchase a home between January 1st and December 1st, 2009. This means that you must close on the home by November 30th. A lot of people, including some financial professionals, think that this is available for any home purchase in 2009, but that is not the case. If you close on a home on December 31st, you won’t be able to claim the tax credit. You must have the keys in hand by November 30th.
If you want to get a great deal by buying for a bank-owned or short sale property – and there are plenty of them out there – and plan to claim the tax credit, it’s wise to at least begin your preliminary search now. Many “distressed” properties can take longer than the traditional 30 days to close, so don’t count on being able to put in an offer on November 1st and close by the 30th.
You also can read more posts about the tax credit: