I’m sorry, I was a little vague on this one. I meant that if you borrowed the $8,000 in advance from a family member, or someone else to buy the home, it may take you a little longer to pay that loan back with the current delay in processing amended returns. You can amend your 2008 taxes to receive the $8,000 now, or you can wait to file your 2009 taxes and get the $8,000 tax credit next year. Unfortunately, anyone who used the $7,500 tax credit (loan) that was available from April 10, 2008 – December 31, 2008, does not qualify for the $8,000 First time home buyer tax credit. The term tax credit is confusing here, as the 2008 tax credit of $7,500 must be paid back, it’s really a loan and not a credit. The new $8,000 tax credit in effect from January 1, 2009 – December 1, 2009 (Now extended to April 30, 2010) is a true credit because it does not have to be paid back. It seems very unfair that someone who closed on their home in December of 2008 has to pay back the $7,500 tax “credit”, but someone who closed on their home in January of 2009 gets $8,000 with no strings attached.

Please note that I am not a tax professional and this information should not be construed as tax advice. Please contact your CPA for any, and all, tax advice.

Brad