Claim Your 2009 Home Purchase on Your 2008 Tax Return?

This was sent to me from a colleague of mine.

I just found this information regarding the new tax credit….I don’t think a lot of buyers or agents are aware of the fact that buyers can claim the tax credit on their 2008 return even if they purchase the home in 2009….great incentive to pass on to buyers and agents….

Q.

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. Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

As always, talk to your accountant or tax professional to make sure you qualify and file correctly.