Answer: Because you hadn't owned a house for three years before you bought, you should be eligible for a first-time homebuyers tax credit, 10 percent of your purchase price. I'd guess that you fall within the income limits. (The credit starts to phase out at $150,000 for a married couple and disappears at $170,000.)
There are two ways to claim the credit:
You can wait until you file your 2009 return next April 15 and take $7,600 off the federal income tax you owe then. If you don't owe that much they'll even send you a check for the difference.
Or you can file an amended return for your 2008 income and claim the credit against what you paid last April, requesting a refund right now.
For help with the paperwork, consult a tax professional.
Assessment Is Low
Dear Ms. Lank: My tax assessment was recently changed to a value of $184,00. I currently have my home listed for $204,000 and would sell for $200,00 but I can't get an answer about the assessor's report. Does this mean someone would not get financing at the $200,000 because of this report? This is so frustrating. -- Via e-mail.
Answer: The assessment is used for taxation purposes only. A buyer shouldn't rely on it for a current estimate of market value, and a lending institution will send out its own appraiser anyhow.
Indeed, a lower property tax may be a selling point. I wouldn't worry about it. But if you'd go to $200,000, and if you're anxious for a quick sale, then list at $199,900. Otherwise, you're eliminating a whole slew of potential buyers who tell their agents "Don't show me anything over $200,000."