If you’ve talked me at all, you’ve probably heard about the $7,500 Tax Credit that first time home buyers get.  I posted a pretty good FAQ on it earlier (Tax Credit Will You Get It) , but I’ve come across 2 additional questions I thought it would be worth sharing.  Keep in mind all of this should be verified with a CPA for your individual situation.

1. Can I use the $7,500 for my down payment?

   The short answer is no.  Basically, since it’s from the IRS/Government, it would bring the IRS into the HUD statement. [soap box] Basically, the Government is too big to be bogged down by your transaction, instead they would rather focus on taking your money at gun point for other projects.[/soap box]

2. So I can’t get the $7,500 until I file my 2008 Tax Return?

   Short answer.. Yep, you have to wait. The best suggestion would be consult with CPA then adjust your income tax witholding or adjust quarterly estimated tax payments.

Just a little note to remind folks that I’m pretty much jumping into to becoming a social media guru.  I want to be the one on the internets for all your real estate needs, so be sure to follow me @JarvisTeam .

I’ll be posting some follow up to the tax credit in the coming days.  In addition, I’ll be covering some blog topics to use in my class.

On July 30th Pres. Bush signed a major housing bill (HR 3221) into law.  As part of the bill, Congress created a new, temporary tax credit to provide some incentive to buy a home.  Here’s a quick check list to see if you qualify:

• Bought and CLOSED after April 9th, 2008
• YOU MUST CLOSE BEFORE JULY 1st, 2009
• Must be your first home (or you must be an individual who has not owned a principal residence in 3 years)
• You must make under $75,000 or have a joint income of less than $150,000 (you still get partial credit if you are over)
• The credit is 10% of the purchase price of the home, with a cap at $7,500
• Obviously, this property must be in the US
• Finally, you must have use Joshua Jarvis as your Realtor (ok, so I am kidding about that one)