What Is The Scoop On This Tax Credit????

WOW, have the questions pertaining to the Tax Credit been fast and furious. First let me say that Flat Branch Mortgage and any of our employees are not qualified to give tax advice. Please consult your accountant to find out how the credit can help you! However, I have had several discussions with accountants about how our client's can benefit! The Senate is holding the final vote this evening on the Stimulus package. In it is a revised version of the Tax Credit. Alot of numbers and rumors are flying around as different proposals were being leaked. The latest update is that this is now $8000 and it is for First Time Home Buyers. This is defined as not owning a home the last 3 years. This will not have to be paid back unless you sell the home within 3 years. The credit is also refundable so in basic terms it works like this. Come tax time next year your income and deductions will be calculates as normal. Once your total Tax due is calculated, this amount is reduced by your credits. This is where the Tax Credit comes in. For example, if you end up owing $5000 in tax, this would be reduced to Zero! Then you would get a refund of the remaining credit ($3000) and you would also get back the money you paid in during the year that was withheld from your paycheck! So as you see it is different than getting a check for $8000. You can choose to adjust your withholdings as well, but you get the point. Pretty nice perk. I sure wish I had it when I bought my home! Safe to say it is exciting for First Time Buyers. Contact your accountant to confirm how you can benefit and then contact Flat Branch. We look forward to serving you!
Check back next week. More details will surely be posted.

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