NAHB’s Web site explaining the tax credit — www.federalhousingtaxcredit.com — has been inundated by home builders and prospective buyers seeking information on the new benefit.

One of the most commonly asked questions since the credit was enacted concerns how it can be used for a downpayment, and new questions and answers related to this issue recently have been added to the Web site. (See questions 19 to 21.)

First-time home buyers (defined as those who have not owned a principal residence for three years) should be aware of several mechanisms that can narrow or close the gap between the time they purchase their home and the time they take the deduction on their income tax return, said Dietz.

NAHB successfully pushed for a rule that allows qualified buyers making a purchase in 2009 before the July 1 cut-off date to claim the $7,500 credit on their 2008 tax return — in effect, one year early. Also, home buyers who purchase a home after filing their 2008 tax return with the IRS in 2009 may file an amended tax return that includes the credit.

Educate your prospective home buyers and promote NAHB's tax credit resources to increase buyer confidence and boost condo sales.

For more information on the credit, e-mail Rob Dietz, or call him at 800-368-5242 x8285; or contact NAHB Public Affairs, x8447. [return to top]