Taxpayer asks:
Do you have any advice for how SELLERS should best take advantage of the credit? Should we advertise about the credit with our real estate listings?
Taxgirl says:
That’s a great question!
I think the credit is a real selling point (though I’m not a fan of the concept). It definitely makes sense to advertise it. I just think you have to be careful not to provide legal advice or create an unfair expectation. I’ve seen some banner ads that say, “Buyers may qualify for up to $8000 in tax credits! See your tax professional for more information.” That makes sense because you’re not making promises or giving advice that might haunt you later.
You could even promote the credit on your website. I’ve seen some real estate folks doing a brief promo for the credit and then link to the IRS web site. You could even link to say, a reputable tax blog, like, oh, I don’t know, taxgirl.com.
What I wouldn’t do is promise the credit is applicable or give the impression that you’ll “help” complete the form 5405. Why would you want that kind of headache? Let the buyer’s accountant or tax preparer handle it.
So yes, go ahead and promote the credit as part of your marketing strategy. That was the intent of Congress: to get the real estate market moving again. People can’t take advantage of the credit if they don’t know about it.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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My tax prep company has been working with mortgage brokers, real estate agents and new purchasers to help them amend this years taxes to get the credit as soon as possible.
My tax prep company has been working with mortgage brokers, real estate agents and new purchasers to help them amend this years taxes to get the credit as soon as possible.
Sorry… forgot to say great post – can’t wait to read your next one!