The Federal Tax Credits Blog

Archive for April, 2009

Question: Do I get the $8000 first time Homebuyers tax credit if I buy a manufactured home on rented land?

Answer: No a manufactured home on rented space is considered personal property and is not real estate. It would be like buying motor home and trying to get the first time home Buyers Tax Credit.

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IN THE CIRCUIT COURT OF THE FOURTH JUDICIAL CIRCUIT, IN AND FOR NASSAU COUNTY, FLORIDA Case No. 2010 DR 104 Division: B Steven William Phelps, Petitioner, and Sebastian Otte, Respondent.

Question: Can I claim the $8,000 home buyer tax credit now if my home will not be completed (built) and closed till June?

I’ve read conflicting reports that state that you can claim it now as long as the close is before November, 2009 & have also read that you cannot claim it till you close. CNN reported that it could be claimed on 2008 just by filing.

Answer: The new $8k credit that does not have to be paid back will be claimed on your 2009 return NEXT year.

The IRS has NOT announced any procedures for taxpayers to claim the new $8k credit on their 2008 tax returns. As it stands right now, the only one that you can claim on your 2008 return is the $7.5k credit that must be repaid.

It’s likely that the IRS will have some method in place for 2009 buyers who claimed the $7.5k credit on their 2008 returns to convert that to the $8k credit but most likely that will be done when you file your 2009 return NEXT year.

To claim the $7.5k credit on your 2008 return, you must purchase your home or receive the certificate of occupancy prior to the June 30 deadline. You must also close BEFORE you claim the credit so you either have to request an extension (Form 4868) and file once you close OR file now without it and file an amended return on Form 1040-X once you close.

CNN – 10 Jobs That Will Get A Raise In 2010

Farewell And Good Riddance To 2009, A Year In Which A Whopping 85% Of Big Companies Did Away With Across-The-Board Annual Merit Raises, According To A Survey By Deloitte & Touche. Surprisingly, Executives Fared Somewhat Worse Than The Rank And File, With 66% Of Senior Managers Seeing Either No Increase In Their Pay Or A Salary Reduction, Versus 54% Of Employees In The Same Boat.

CLIMATEGATE censorship! MSNBC NBC CBS ABC and CNN Blackout! (Agenda at work?)

New Year 2010 is coming with a blast of happiness and people across the world are ready to embrace New Year 2010 whole heartedly. New Year symbolizes new beginning. People celebrate New Years by organizing New Year party on New Year eve, going on New Year cruises and are totally merged in the joy of celebrating the upcoming year. New Year party is a way to take a break from the tiring journey of previous year and welcome the upcoming New Year 2010. New Year’s Eve or Old Year’s Night is celebrated on December 31, the final day of the Gregorian year, and the day before New Year’s Day. New Year’s Eve is celebrated with parties and social gatherings celebrating the transition of the year at midnight. As the year 2009 departs and New Year 2010 gets started, first thing people look for is 2010 horoscopes.These 2010 horoscopes will be based upon 12 zodiac signs used to interpret daily horoscopes through sun sign analysis. With the extreme and excessive use of internet now days one can cast his personalized chart for free on various 2010 horoscopes sites and obtain a unique full color birth chart with reports about his future including his relationships, career, money and romance. Thanks to internet, now you are just a click away from receiving complete full fledged interpretations about your future. One more thing that will gain the attention of everyone in the New Year 2010 will be 2010 calendars. People will browse through the 2010 calendars to know about the day when their birthday will form in this New Year 2010. Secondly, they look for various festivals and celebrations round the year to plan the celebrations in the best way they can. Besides conventional paper 2010 calendars that we use to hang on the walls of our home, nowadays online 2010 calendars are also available and that with no cost at all on various sites. New Year Cruise 2010 is one of the best ideas to make ones New Year happening. People take their family and friends on a cruise tour and enjoy a splendid vacation at Bahamas, Hawaii or Alaska. New Year Cruises are gaining lot of popularity as they are not only affordable, but are the beautiful ways to welcome the New Year 2010.

New Year 2010 is coming with a blast of happiness and people across the world are ready to embrace New Year 2010 whole heartedly. New Year symbolizes new beginning. People celebrate New Years by organizing New Year party on New Year eve, going on New Year cruises and are totally merged in the joy of celebrating the upcoming year. New Year party is a way to take a break from the tiring journey of previous year and welcome the upcoming New Year 2010. New Year’s Eve or Old Year’s Night is celebrated on December 31, the final day of the Gregorian year, and the day before New Year’s Day. New Year’s Eve is celebrated with parties and social gatherings celebrating the transition of the year at midnight.

As the year 2009 departs and New Year 2010 gets started, first thing people look for is 2010 horoscopes.These 2010 horoscopes will be based upon 12 zodiac signs used to interpret daily horoscopes through sun sign analysis. With the extreme and excessive use of internet now days one can cast his personalized chart for free on various 2010 horoscopes sites and obtain a unique full color birth chart with reports about his future including his relationships, career, money and romance. Thanks to internet, now you are just a click away from receiving complete full fledged interpretations about your future.

One more thing that will gain the attention of everyone in the New Year 2010 will be 2010 calendars. People will browse through the 2010 calendars to know about the day when their birthday will form in this New Year 2010. Secondly, they look for various festivals and celebrations round the year to plan the celebrations in the best way they can. Besides conventional paper 2010 calendars that we use to hang on the walls of our home, nowadays online 2010 calendars are also available and that with no cost at all on various sites.

New Year Cruise 2010 is one of the best ideas to make ones New Year happening. People take their family and friends on a cruise tour and enjoy a splendid vacation at Bahamas, Hawaii or Alaska. New Year Cruises are gaining lot of popularity as they are not only affordable, but are the beautiful ways to welcome the New Year 2010.

Home prices fall in latest report

Marilyn Pearson-Adams, president of the Hernando County Association of Realtors, said she is not sweating over a newly released housing market that shows home prices fell 1.6 percent in the Tampa Bay metropolitan area from September to October.

Expansion and Extension of the Homebuyer Tax Credit

Question: Adoption Tax Credit?

I have heard of the adoption tax credit and have gone on the IRS website to read about it. But It just doesnt make sense to me. Is there someone that can explain to me what it is and who can use it? I am confused! I had someone explain it as being the government pays for the adoption and you pay the money back from your taxes. I KNOW THAT CAN’T BE CORRECT!

Answer: You are right the government does not pay for the adoption and then you pay the government back. However the thing to remember is that you are receiving a tax credit not a deduction. What that means is that qualifying expenses paid to adopt an eligible child is subtracted from your tax liability. So you calculate your income tax owed and then subtract your adoption expenses from what you owe.

The credit for qualifying adoption expenses is subject to a dollar limit and an income limit. The income limit on the adoption credit is based on your modified adjusted gross income.

To take the credit or exclusion, complete Form 8839, Qualified Adoption Expenses, and attach the form to your Form 1040 or Form 1040A.

If you are confused when you are completing Form 8839 I would suggest working with a tax professional.

Know when to Claim Tax Credits, deductions

Tax credits and tax deductions are two common ways people lower their income tax bills. Although similar in intention, these two tax-reduction methods have fundamental differences and are not interchangeable. Knowing the difference can have a big impact on your bottom line.

Q 556. What is form 8839? (Adoption Tax Credit)

House refurbishment is renovating your home. It may include big construction project like house extension or house repairs. Anything which is related to home improvement can be included in home refurbishment project. When you start living in a house, you always feel you can do something better with the space available. Or while you use things, their wear and tear is sure. To have a right lifestyle, you have to maintain your house and the things within.

A house refurbishment project can be quite expensive – like loft conversion or house extension, or quite cheap – like bringing new upholstery for your sofas. But whatever changes you bring into your home, they should reflect your taste and your personality.

Designing and planning is the most important aspect of getting successful home renovation project. Some kind of planning is always required. You should make a list of tasks to be completed during the home refurbishment project. List separately the tasks you are doing yourself and others to be done by the professionals. Once you finalize your list, start looking for the contractors and subcontractors. Have at least three bids for the contractors before choosing one. You must check whether you have to seek permissions from authorities for some tasks such as house extension.

While going for any type of major renovation, check that your house is safe. Check the foundations, walls; windows, check if they are strong enough take the load. Securing of foundation is most important. Other areas that need attention are weakened walls, carrying beams and joists. Replace or repair the leaking roof and damaged windows.

If in the process of house refurbishment, your house needs some demolition works to be done, you must rent a bigger container for debris.

Carpenters should be called for major structural changes like moving walls, constructing new walls, adding new beams to support bigger weight on the upper storey. You may also need repairing and constructing new doors and windows.

Take care of proper central heating and air conditioning. If required, install new electrical and plumbing system. When walls are open, it is time to install insulation.

Flooring should be done after all other construction tasks are complete. This will save your floor from any damage.

Apart from doors and windows, you also need utility furniture to support your house refurbishment. This is time to call carpenter for fine carpentry job. Besides, there are many other interior jobs like painting, decorating, hanging wall papers and more.

You can see that this kind of house refurbishment project demands huge budget and plenty of time to be devoted. Budget and time depends upon your needs and planning. So, go for a house refurbishment project taking into account all these important limitations.

Trend 2010: Landscape and living room

If you own a home in southern Idaho — or are looking to buy one— 2010 is likely to treat you well.