Buyer Be AWARE

Recently there has been much made of the new home buyer tax credit. In order to qualify for this $8,000.00 tax credit you must be a first time home buyer (meaning you have not owned a home in the last 3 years), and must meet specific guidelines concerning the timing of the offer and close of escrow. (IRS Tax Credit Info) The program was so popular and jump started our sagging housing market, that it has been extended and expanded.

Sound too good to be true?

Maybe...

Several that claimed this tax credit on their income tax are being audited. The National Association of Realtors estimates that 2 million first time buyers have qualified for the credit,along with 1.5 million repeat buyers.

Close to 650,000 correspondence exams from the IRS have arrived in our mail boxes. A correspondence exam is a request for additional information,and is the first step in an audit.Of those receiving this request 140,000 had filed for the home buyer credit.

Through the end of February more than 1.8 million taxpayers applied for the home buyer credit. Of those who have applied for the credit as many as 260,000 or 14% are now facing an IRS audit.

Too good to be true..naw, this tax credit has help numerous folks buy new homes, just be for warned, be prepared, dot those "i's" cross those "t's" and enjoy your new homes!