The Federal Tax Credits Blog

Archive for the ‘Home Tax Credits’ Category

Question: Regarding the home buyer Tax Credit Amendment in November 2009, is 5 consecutive years defined as a tax year?

Meaning, if I bought a home in July 2005 (and claimed it on my taxes) and lived in it through August 2009, technically this is 5 tax years. The IRS states that a repeat homebuyer must have lived in the same principal residence for any five-consecutive-year period. I paid taxes for 5 consecutive years, so I hope I am reading this correctly.
Thanks Noreen. I know it does not state “tax years” in the official language, but there are many other caveats where tax years are considered the norm with the IRS. Do you think it is worth a shot, or should I just give up on trying to take some extra Obama bucks?

Answer: Bummer, that only makes 4 years.

The ‘year’ begins in the month that you purchase the home.

Excellent try though!
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I don’t usually get excited about a thumbs down. I love a creative tax credit or deduction. This example does not qualify.
You can try it if you like though.
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But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time homebuyers.” To qualify this way, a buyer must have “owned and used the same home as a principal or primary residence for at least five consecutive years” of the eight-year period ending on the date of purchase of a new home as a primary residence.

No reference to ‘TAX YEARS’

But you know, it is the IRS’ fault, they were not specific enough. They should have stated 60 consecutive months instead of the ambiguous 5 years.

Fraudulent home buyer tax credit claims cost $326 million

Associated Press Friday, April 15, 2011 WASHINGTON — The Internal Revenue Service has paid out more than half a billion dollars in home buyer tax credits to people who probably didn’t qualify, a government investigator said Friday. Most of the money — about $326 million — went to more than 47,000 taxpayers who didn’t qualify as first-time home buyers because there was evidence they had already …

What are the Income Limitations in the Home Buyer Tax Credit?

Question: Do you think the $8000 home buying tax credit will be extended again?

Answer: I hope not!!! i don’t think so either!

the market needs to hit bottom! therefore we will know what true value is.

Clear Capital(R) Home Data Index First to Identify Home Price Double Dip in the West

Prices in the West Region Through March Reach Lows Not Experienced Since 2001; Across the Rest of the U.S., Negative Sentiment “Overstated,” as Prices in the South and Midwest Flat in 2011

$8000 First Time Home Buyer Tax Credit

Question: First time homebuyer’s $8000 tax credit?

I purchased my home in 2009 and have lived there exactly one year. I have two years left and then will no longer have to pay back the $8000 tax credit I received. I am now planning on getting married and will then move to the house my fiance owns.

Is there any way at all to legally get out of paying the credit back if I sell it now? (I already spent the $8000 on a new roof) It’s still only worth about as much as I purchased it for, so I have no way to make the $8000 back. It’s not practical for him to move to my house due to location, so I really have no other choice. I really don’t want to wait 2 more years to get married just because I’m stuck with my house. Thanks for your help!

Answer: If you sell your house to someone who is not related to you, you only have to pay back the credit up to the amount of gain you realize. So, if your house (including the cost of the new roof) has no gain, you do not pay back the credit. If your house has a gain of $2,000, you only pay back $2,000 of the credit. If your house has a gain of more than $8,000 you only pay back the original $8,000.

The above seems to be the

In reply to Relax. Prices Aren’t Skyrocketing : The above seems to be the classic Australian problem of arguing orthodoxies, rather than thinking constructively. It is well recognized that the CPI is a construct that suits its purpose, but what is needed is solid research into the cost of living. What drives the cost of food , is it lack of competition in the market ? Big wholesalers control the …

1400 Anderson Corner Fruitland, parma, Idaho

Question: I married military & placed him on my existing home then we bought home. Can we claim buyers home credit?

I fell in love with a Marine and got married. Two months before we were married I placed him on my existing home. After we were married we bought a home in April 2009. Do we qualify for the 6500. credit? He got orders to Michigan in 2007. I read we BOTH need to be living in the existing home for 5 yrs. Is he exempt?

Answer: You do not qualify for the credit regardless of him, the purchase had to be AFTER November 6, 2009.

As you bought in April, and one of you already owned property neither of you qualify for any of these credits.

In the market for a home? Now is the time to buy

Maybe it’s the allure of lakefront living or the realization that there are some very good deals out there. Realtors in the tri-county area have been seeing a lot of activity in the real estate market.

Information on the First time and Existing Home Owner Tax Credit

Question: When does the 2008 tax credit have to be paid.?

I am trying to sell my home to move an hour closer to work but I can’t because I have to pay back the $7500 tax credit from 2008. I know that the “credit” is due in full if I sell the house before this is paid back.

Is this credit paid at the closing? Or, do I pay that back during tax time next year?

Would appreciate any feedback on the question asked and nothing else. Thank you.

Answer: It’s part of your tax return for the year.
Be advised, you need to do the tax calculation as soon as you sell the house (if you sell for less than what you paid, you may not owe the full $7500 back). This is because it can cause an estimated tax payment requirement.

Real estate: Time to buy again

After four years of plunging home prices, America’s most attractive asset class is housing.

Tax on Short Sale, Loan Modification and Foreclosure – Recourse vs Non-Recourse Mortgages