The Federal Tax Credits Blog

Archive for June, 2008

Question: Can the $8,000 tax credit for first-time homebuyers be used for closing costs?

I’ve put in an offer on a house which has been accepted and wonder whether the 8,000 tax credit can be used for down payment or closing costs and fees that are associated with the loan and inspection process. If so, how do you apply for that.

Answer: At the present time you will not be able to use the tax credit toward closing cost. There has been talk of doing something like that but I don’t think that has passed. Among other issues refunds related to these credits take some time to receive. Don’t plan on a refund to your 2008 return until at least 12 weeks after closing and your having filed an amendment.

Tax-Free Shortage May Repeat Muni Debt Outperforming Treasuries

Dec. 31 (Bloomberg) — Tax-exempt bonds may return more than Treasuries for a second straight year, paced by the biggest increase in taxable state and local issues as U.S. income tax rates are poised to rise in 2011.

Toledo OH Real Estate_Ask Dede_14_tax credit down payment use

Question: Are tax credits still available for hybrid car buyers?

I want to buy a new Chevy Malibu Hybrid this spring (probably April). Tax credit would seal the deal. How can I know how many might be sold??

Answer: http://www.irs.gov/irs/article/0,,id=176409,00.html

http://www.irs.gov/newsroom/article/0,,id=157557,00.html

You could check back before you buy the car. The law has a 1 quarter delay in it before the credit begins to phase out. Chevy’s have not been hot sellers, so the credit is still probably going to be there.

Keep in mind, you need to look at your taxes. The credit can only reduce your tax bill to zero and not below. The credit fits into a hierarchy–children come first. If your taxes are already zero, no change. If you are “rich,” the credit is also subject to AMT. If you normally pay AMT, you don’t get it.

Hint, I use software to do my taxes. While I don’t usually pay AMT, the software calculates it behind the scenes. Each year, I pull up the form 6251 to see how close I am to paying it. This year I was $2500 more on the 1040 tax. If you do the same and see a gap $500, you may find that under similar circumstances in 2009, you would only get a $500 credit as the hybrid credit can’s reduce your credit past the the AMT.

How smart can smart phones get

Welcome to the beginning of the second BlackBerry Decade. Ten years ago, Research In Motion Ltd. was a small but growing technology firm building specialized two way pagers for businessmen and politi…

Hydrogen hybrid conversion run car on water save fuel gas

Question: If Obama’s stimulus package passes in the Senate, when will we start getting the tax benefits he’s proposing?

As part of the stimulus, Obama is proposing a $2500 college tuition tax credit. I am a college student and was wondering when this tax credit will take effect, that is, if it gets passed? I am doing my 2008 taxes right now and am wondering if they will be impacted. Or, will the new tax credit not go into effect until next year (2009 tax year)?

Answer: it wont be for last year, and count on the first of never

Emerging Stocks Rise to 16-Month High, Set for Record Year

Dec. 31 (Bloomberg) — Emerging-market stocks rose to the highest in more than 16 months, heading for their biggest yearly gain, and bonds were poised for a record annual rally after China pledged to maintain stimulus programs that have helped bolster the global economy.

Keynesian Economics is a Failure – Why is Obama trying it again? Repeal the Stimulus Package

Question: What is the least expensive and efficient residential solar energy system one can install?

I just got an estimate of about $37,000, and that was after rebates and tax credits. And I would still have a sizeable PG&E bill. And would it save to install yourself?

Answer: You know I bought 3 small security lights that run on light and they did not work so I am holding off on the big system. Plus PG&E is so expensive compaired to other companies.

Mr. Tightwad’s tips for the new year

Keeping with tradition, Mr. Tightwad is sticking with the old standby new year resolution – saving even more money than the previous year. Along with his friends at the Not-So-Mighty Dollar blog, Mr. T has compiledsome of the best tips and advice they gave in 2009 and added a wholeboatload of new ones.

www.PowerSave3400.com 20 watt Solar Attic Fan and residential home net metering solar kit ON SALE!

Did you know that the FCRA (Fair Credit Reporting Act), allows you to get a FREE copy of your credit report 1 time a year?

Congress passed this law to help consumers help themselves. They want you to get a copy of your credit report to verify its validity. They want you to have rights to disagree with what is being reported.’ and they want you to have an outlet to get those items fixed.

Now there are a ton of credit repair agencies out there who will make you promises and tell you what they want you to hear. They will charge you thousands of dollars every month to do what you can do yourself! Yep, that’s right! Everything they can do, you can do yourself. It may take a little bit of time, but to save yourself thousands of dollars and to have the ability to dispute items on your credit report that are incorrect, reported wrong, or just not yours. Is it worth it?

Want to know how? With all of the information on the web about credit repair, the only real reason to have someone else do it for you is if you do not have the time. Credit is something everyone should know about and understand. By cleaning up your credit yourself, you can lean about it while reaping the benefits of cleaning up your credit yourself. So why not save yourself thousands of dollars and lean about credit?

I used a simple set of letters, 4 to be exact, to raise my credit score from 610 to 745 in a little over 30 days. To learn this information, I invested about 20 hours doing research, writing these letters, and sending the letters.

Want to lean more? Check out our Credit Repair Blog.

Good Luck, and drop by my blog and let me know how things are going.