The Federal Tax Credits Blog

Archive for July, 2010

Tax credits spur May home sales

Warmer weather and seasonal trends, combined with the end of the federal homebuyer tax credits, drove completed home sales up 24 percent locally from April to May, but the bottom fell out of pending sales, which plummeted 33 percent after first stage of the credit expired.

First Time Home Buyer Tax Credit Extension

Question: regarding the 6,500 tax credit for homeowners.?

We purchased our home in July of 2006. We sold our previous home in which we lived for 7 years. Not sure if our current home would qualify, or if the purchase had to be this year.

Do we qualify for the 6,500 credit? We know we do under the income guidelines.

Thanks.

Answer: Let’s say you buy a house today, 12/2/2009. The lookback period for the 8 years is 12/2/2001 to 12/2/2009. To get 5 years, you need to see the previous house no earlier than 12/2/2006 *and* have rented for the intermediate 3 years.

You sold in July and you weren’t renting.
No, you do not qualify.

Tax-credit extension will help out some

July 08–MANATEE — A recent three-month extension of a homebuyer tax-credit deadline will help seal some delayed deals but otherwise will have little impact on the local housing market, area real-estate agents say.

$6500 Tax Credit for Current Homeowners

Question: Question????

I live with my partner who works full time for minimum wage and we get child tax credit and working tax credits both at the high rate.
I am going to start working part time 3 hours a week, 100 pounds a month.
Would I have to pay tax on this 100 a month and would my tax credits go down?

Answer: This is a change in your circumstances. You must advise HMRC of this. They will be able to discuss your case individually with you.

Saturday’s Last Word on Friday

Stimulus money “Regarding the article ‘Look who got stimulus millions—you’ (June 19 Gazette): Now you know why we’re so annoyed at the stimulus. I thought it was to be shovel-ready jobs, not College of William & Mary, Williamsburg Redevelopment & Housing Authority, Williamsburg Area Transit, food stamps, unemployment benefits or tax credits for one-time retirement spiff. Where are the shovel …

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Autonet Mobile KT-ANMRTR-01 Automotive Wi-Fi Router $99.95 Autonet Mobile is a smart addition to any vehicle, combining 3G data technology and Wi-Fi, to turn your vehicle into a Wi-Fi hotspot. Autonet Mobile goes beyond in-car DVD players and mobile broadband cards by connecting multiple passengers and multiple Wi-Fi devices in and around the vehicle for hours of entertainment and productivity. With our wireless technology, it does not matter if you are i…

Individual marginal tax rates under the U.S. tax and transfer system: Effects of the 1986 and 1993 tax acts (Working paper series / University of Maryland, Department of Economics) …

General equilibrium cost benefit analysis of education and tax policies (NBER working paper series) …

Interest Rates, Tax Credits, Schiff For Senate Money Bomb

Question: For my child that lived abroad with my parents, can I claim child tax credit and dependent?

My daughter spent most of the last year with my parents abroad. We did provide support for her living cost. Can we claim her as our dependent? Can we claim child tax credit? Thanks!

Answer: The following assumes your child is under 19 or under 24 and a full-time student.

To be your “qualifying child”, your child will have had to live with you or your spouse for more than half the year. Therefore, your daughter cannot be your “qualifying child.” Because of this, you will not get the child tax credit.

Are your parents US taxpayers? If so, then your child is the “qualifying child” of your parents, since your child did not provide over half of her own support. Your parents may claim her as a dependent and get the child tax credit, even if you supported the child.

If your parents are not US taxpayers, then your child is your “qualifying relative” as long as you have provided over half of her support. You can claim a dependency exemption for her but no credits associated with “qualifying child” such as the child tax credit.

Ohio Gov. Ted Strickland accuses John Kasich of helping the super rich while in Congress

Democratic Gov. Ted Strickland attacks the congressional voting record of his Republican opponent, John Kasich.

VP Biden on Economic Expansion for the Middle Class

Question: Questions about the housing rescue bill?

I am a first time home buyer and I’ve heard that I can receive a credit of $7500 for buying a house.

Every time I call a mortgage lender they act like either I’m from Mars and I don’t know what I’m talking about or they say they don’t have any updated information to tell me.

Who can I call or where can I find out additional information about this. I want to make sure I make the appropriate downpayments and follow the rules to make sure I’m elgible.

Who can tell me more about this? What resources are there out there? It seems like Congress passed a law and no one knows about it. Is anyone with a pulse eligible that is a first time home buyer?

Answer: First time home buyers, is a “Loan” that you get from the government that you have to pay back each year when you file for your income taxes.

Lenders do not like this credit at all because it ends up as a “phantom” down payment. What i mean is you have to pay it back and increases the risk to the lender.

More information found in my link below.

Las Vegas home sales fall 11 percent in June

July 09–The tailwind from the homebuyer tax credit has ended and some housing analysts are concerned the market may be headed for further decline.

Home Buyer Tax Credit Update, Use $ for Down Payment