Tax Credit FAQ – Part 2

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.

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