The Federal Tax Credits Blog

Archive for the ‘First Time Homebuyer Tax Credit’ Category

Question: First time home buyer credit -help with new 1040x form?

I just purchased a home and closed May 28 2010. I was in a binding contract (Purchase Agreement) as of April 28 qualifying me for the first time home buyer credit. The new 1040x form is a little misleading and I was hoping to get some help in filling it out. I have filled out the 5405 form but am stuck on the 1040x. Which sections of new form do I need to fill out? …http://www.irs.gov/pub/irs-pdf/f1040x.pdf…..Thank you for your help!!!!!!!!!

Answer: See the instructions.

You start at line 10, which equals your total tax bill (see the line above your withholding on the 1040 or 1040A). Then you put down the remaining lines. The 5405 is PART of line 14. If you do it right, the amount of the credit pops out on line 20,21.

Attach a copy of the binding contract as well as the settlement sheet and send it in.

The ABCs Of Doing Due Diligence On Fixed Income Annuities

State regulators are stepping up as the SEC, reigned in by Dodd Frank, retreats on regulation of fix

Question: Is my fiance eligible for the $8000 first time home buyers credit?

He owned a trailer (his name was on the title – the title had “manufactured home” on it) within the past 3 years, but it was on rented property. Does this quality as a “home,” and make him ineligible to receive the $8000 tax credit? Not sure if states have anything to do with it, but his trailer was in Michigan and we are purchasing a single family home in Kentucky.

Answer: this is a very good question. If he was able to get a real estate loan- a mortgage on the home then it would be considered a home he has owned in the past 3 years. Not all manufactured homes are finance-able. Otherwise it would have been a personal loan. Like a vehicle

Britain could become nation of renters

Britain is home to a generation of renters who are giving up on buying their own home, according to a new report.

New tax credit good news for first-time home buyers.(Business)(Taxpayers may be eligible for up to $8,000 that does not have to be paid back): An article from: The Register-Guard (Eugene, OR) $9.95 This digital document is an article from The Register-Guard (Eugene, OR), published by The Register Guard on February 26, 2009. The length of the article is 655 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: New tax credit good ne…

First Time Home Buyer Tax Credit

Question: How do you repay the $8000 first time home buyer credit?

I received the $8000 First time home buyer credit when I bought my house June 2009. Certain things came up and now my wife and I can not afford the house. I need to know how I would have to repay the $8000 if I sold the house before the 3 year mark.

Any and all information is welcome.

Thanks

Answer: 8k due April 15, 2011 in full.

County home sales and prices drop in first quarter

The new year is off to a rocky start for Tooele County’s real estate market.

Overpayment interest accrues on first-time homebuyer.: An article from: The Tax Adviser $9.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on June 1, 2010. The length of the article is 678 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Overpayment interest accrues on fi…

Federal Housing First-Time Home Buyer Tax Credit Program: Top Five Facts

Question: First time home buyer wanting to buy family home from parents, but have credit score of 591.?

My parents are willing to sell me the house I grew up in for almost half of what it is worth. They said all I have to do is get the loan and they would worry about the down payment. I have a credit score of 591 ostly due to hospital bills. I have no credit cards or car loan and with my fiance we have a combined income of about $55,000/yr. They are willing to sell the house for as little as $100,000. What is the best way of going about this. We don’t want the house out of the family but I don’t think they are willing to rent to own.
They do own the house in full. The only bad thing on my credit are 2 credit cards from over 7 years ago and $16,000 in hospital bills. We have no credit cards open.

Credit score came from Quizzle.com

Answer: Well with that credit rating you are unlikely to qualify for loan even if house appraises out at double the asking price.
Best way for you to do this is land contract, installment contract for deed, rent to own, but this doesn’t give your parents up front money.
We need reform of health care as hospital costs and lack of insurance is major cause of US bankruptcies.
In 6 months you could raise your credit rating above 600, and you might be able to qualify, although you really need 660 or better. This means paying all bills in full and on time. This means not running up your credit cards, STOP using them, and pay 3-5 times the minimums due. Pay off delinquencies. AND you have to have a down payment of 3.5-5% down to get a loan nowadays.
So I’m sorry to say, it doesn’t seem feasible for you at this time. In 6-12 months you can do it with perseverance and persistance and restraint.

Five Thoughts: Caps toughness, Ryan Miller’s sass talk, Coyotes future all in focus

In today’s Five Thoughts, we give credit to the guts and heart of the Capitals while falling in love with the G-rated sass talk from Buffalo’s Ryan Miller.

Home Buying Guide – the mortgage process

Question: Has anyone heard of “Gateway Grants” in Irvine, CA 49,500. for home buyers…first-time or otherwise?

Somehow, I got on a list (probably, of those considered to be easy marks) of self-employed business/money-making “opportunities.” This outfit offers to help intesested parties qualify for a grant to be used toward the “American Dream”, regardless of one’s credit. I think it is a scam, as they say they need $47.00 for an immediate processing fee. A Mr. Harvey Winston, whose “signature” appears at the bottom of the letter(just above his disclaimer that this is not a scam) says that every month, 17,000 families receive 10% of the purchase price, up to $495,000., for the downpayment on homes of their own. They do NOT have to be first-time home owners. I already own my home, but this could really rope some people in who could be ruined financially. Should I report them to BBB? Thanks LOTS!!!!!!!

Answer: I suggest you report them. That’s a scam — and there are a LOT of scammers operating in the “grant” arena. Afterall, there are a lot of gullible people who actually want to believe the free money is available for them through these so-called grants.

Real grants and grant giving organizations (both government and private foundations) do not ask for money for processing fees. That’s a sure sign of a scam

The government has already issued warnings against these scammers. You may want to read the warnings FTC has issued against these “grant” companies:

http://www.ftc.gov/opa/2004/03/grantresources.htm

http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt134.htm

Here is also one of the warnings issued by the Better Business Bureau http://www.concord.bbb.org/tips_timesharescams.html

Report them.

IRS scam involved tax credit

WORCESTER – A Southbridge man has been indicted in federal court on charges of filing fraudulent income tax returns that resulted in more than $500,000 in losses to the government.

Being a puppet: “That’s what I get paid for” BAC recording 6/13/09