The Federal Tax Credits Blog

Posts Tagged ‘6500 tax credit irs form’

Question: whats the penalty if you wrongly claim the homebuyer tax credit?

My current home ownership is a long story so I wont go into the details. However I feel I fall into the catefory that can claim the 6500 dollar tax credit for buying a new home. But I was wondering what the penalty would be if I claimed it and the IRS came back and said I didnt qualify for it. Would it be just repaying the credit.

Answer: I just went through hell to get it for my 2008 tax return. Yes, 2008, and I just got it today! Trust me, they’re not going to give you a dime until you jump through a bunch of hoops and prove beyond a shadow of a doubt that you’re entitled to it. I say go for it. If you don’t qualify, they’ll let you know. The main thing you’ll need is a copy of your HUD closing contract.

Inside Windham – 3/18

At a recent town council meeting, a good deal of discussion was held among councilors about how someone whose monthly income was Social Security and part-time work, could pay their property tax. To me, this was a hopeful sign that leadership is realizing that for a good-sized segment of our local population, day to day living is a struggle. The job market in Windham doesn’t seem to be booming …

Question: $8000 new home-buyer tax credit applicable if buying from deceased family member’s trust?

My grandmother passed away and I am looking to purchase her house. The house now belongs to her trust, ‘the estate of …’. I will need to take out a $185,000 loan even with a down payment of over 20%.

IRS tax form 5405 states: “Who Cannot Claim the Credit” “You acquired your home from a related person. A related person includes: Your spouse, ancestors (parents, grandparents,
etc.), or lineal descendants (children, grandchildren,
etc.).”

It sounds pretty clear that if she was alive, I would not qualify. But by my interpretation of the wording, I am not buying this from my grandparent, a person; I am buying it from her trust/estate, an entity.

Do I qualify for the credit? If possible, please reference your answer. Thanks in advance!

Answer: The underlying tax law includes 267(b) and 267(c). 267(c) was limited to lineal relationships. 267(b) is below. It appears trust/estate relationships are listed every which way possible. So, no, you don’t qualify.

(b) Relationships
(1) Members of a family, as defined in subsection (c)(4);
(6) A fiduciary of a trust and a beneficiary of such trust;
(13) Except in the case of a sale or exchange in satisfaction of a pecuniary bequest, an executor of an estate and a beneficiary of such estate.

Tax credit benefits low income

Every year, many working people with low or moderate incomes take a pass on a federal tax credit that could put thousands of dollars back in their pockets.

Santa Clarita Home Buyers: Use IRS Form 5405 To Get Your Tax Credit – Episode 22

CenterPoint Energy Reports Second Quarter 2010 Earnings

CenterPoint Energy, Inc. today reported net income of $81 million, or $0.20 per diluted share, for the second quarter of 2010 compared to $86 million, or $0.24 per diluted share, for the same period of 2009. Â Operating income for the second quarter of 2010 was $263 million compared to $253 million for the same period of 2009.

New $6500 Tax Credit for Current Homeowners