Use Your Tax Stimulus for Your Down Payment
The National Association of Realtors (NAR) has asked the IRS to help the States make the First Time Homebuyers Tax Incentive available at closing. This way, buyers would be able to use the $8000 stimulus towards their closing costs and down payment instead of having to wait until they file their 2009 taxes. According to an article published by NAR, several state housing financing agencies are working to develop programs that would provide bridge loans to buyers who are eligible for the credit but many of those states are having issues securing the funding for these programs.
Currently, the best alternative is for tax payers to modify their withholding on their W-4 to pay less tax upfront and accumulate the cash this year to use towards your purchase. You will be liable for more tax next filing season, but will be able to use to credit to lower that amount. You’ll want to talk to your tax professional before you make any changes. Some examples of W-4 withholding scenarios can be found in this FAQ sheet.
Contact your Century 21 Sweyer agent for more information on how the tax stimulus can work for you.
Similar Posts:
- Update to the Homebuyer Tax Credit
- House votes to expand homebuyer tax credit
- How can I find out what my credit score is?
- Jeff Sweyer Attends Century 21 NBCC in Washington, D.C.
- Why Buy in Today’s Real Estate Market?
