The Federal Tax Credits Blog

Posts Tagged ‘$6500’

Question: Are there government tax credits for a current home owner buying a house in September of 2009?

I’ve heard there is a $6500 tax credit for existing homeowners buying a new house. How far back does that extend?

Answer: No.

The $6500 is only effective for purchases after 11/6/2009.

Prisoners, children cash in on homebuyer tax credit

Associated Press WASHINGTON — Living in prison didn’t stop nearly 1,300 inmates from cashing in on a popular tax break for first-time homebuyers, a government investigator reported Wednesday. Their take: more than $9 million.

$8000 Tax Credit Extension Approved for First Time Home Buyers & Existing Home Owners

Question: New home Buyers Tax Credit, exactly what constitutes or triggers a “binding sales contract” in Texas?

All the information on the extended new home Buyers Tax Credit mentions to qualify you must at the least have “binding sales contract” by Apr 30 ‘10. So what has to happen to make the contract binding? Go through a waiting period, loan approval, house passes inspection?

Answer: Two things:

1) Your sale actually has to go through. A binding contract is not enough

2) A binding contract is a signed and executed contract that is completed by your real estate agent. Many states or municipalities have a uniform form (like California), but places like Nevada let agents make up their own contracts. See your agent for details.

Tax credits fuel King County home sales in April

Sales of single-family homes in King County in April were up 64 percent from a year ago. But some fear a drop-off now that federal tax credits have expired.

California 2010 Home Buyer Tax Credit Extended

Question: What kind of mortgage do I need?

With the housing market like it is and my credit finally improved, what kind of mortgage do I need to get. I will be a first time home-buyer, but my situation is complex:

1. I am active military and currently overseas.
2. My sister will be living there in my absence to maintain it… NOT for rent. I do not want to purchase it as an investment property.
3. Both of the ones I am considering are under $25,000.

It will be my primary residence when I am done with active duty, and in the meanwhile, I will be moving my belongings in, I just won’t physically be there. (I don’t even have an addy for my driver’s license).

Please help me out or at least point me in the right direction. My sister has the POA to take care of everything regarding the purchase and closing and everything else and I have an awesome real estate agent that is trying to help (but doesn’t know the specifics).
Thanks!!!

Answer: you need to get approved by a mortgage professional. then make the offer and let her serve as poa BUT in a mortgage the lender will require a specific POA just for this loan no question so wait till you have acceptance and approval then get the specific number emailed to you. I am sure in the JAG office you can get this done and even fedex back in time to close
I am a mortgage banker in TN & KY

Minnesota First Time Home Buyer Incentive Ends Soon

Realtors believed the tax credit incentive has increased sales. Gary Kalligher, the Owner of Remax 1 in Duluth, said that 176 homes have sold this year, compared to 161 homes at the same time last year.

Home-buyer Tax Credit for the Military Featured on Live 5 News

Question: If you owned my home, what would you do?

Here is the deal, i own a home in st.petersburg florida valued at around 200,000. I have owned the home for a little over 2 years now. The purchase price was 120,000. I pay the mortgage to the previous owner on a monthly basis of 689.00. It is a 30 year loan, at a fixed 6 % rate. In september, in order to keep up with my property and insurance taxes, i took out a home equity line of credit with bank of america. Right now, i have used about 6500.00 of the 25,000 limit(it is a 10 year HELOC). If you were in my position, what would you do?. Just keep paying on both these loans like i have been, or seek to refinance the entire amount, to pay off the previous owner, and the HELOC. Thank you for your time.
I did not need a bank, since the previous owner totally financed the 120,000 minus the 5,000 down payment.

Answer: I think you have the right idea by seeking to pay off both of the loans with one of your own….however, I do think that 689 is quite low and your new bank loan would be MUCH higher.
Is there any way you can have an apprasial done since that is quite a huge jump in value (80k) over the course of two years…..
Is there a reason that you decided NOT to finance with the bank in the first place?

Home Buyer Tax Credit Deadline Approaches

Local realtors push to get last minute first time buyers and current owners moving up to qualify for the tax credit. read more

Question: Do I file an amended 1040x along with the 5405 form to get the Tax Credit for First Time Home Buyer this year?

I have already filed my taxes this year and will be closing on a home 5/4/09 so I am trying to figure out how to get the tax credit to receive the $8000.

Answer: After you purchase the home, you will file a form 1040X and the form 5405 to claim the credit. You have the option also to wait until you file your 2009 income tax return. If you go with the amendment, indicate on the form 5405, on line C, that you purchased the home in 2009, but are claiming on the 2008 income tax return. Then the amount of the credit will be entered on line 15C of the amended income tax return.

It does take up to 12 weeks to receive a refund from an amended income tax return.

I am attaching links to the IRS form 1040X along with the instructions. Also I am linking the form 5405 so you are able to determine if you meet all the requirements for claiming the credit.

Good luck with the new home.

Laura H – H&R Block – Senior Tax Advisor 5
**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

Reader views (99)

I wish the authors would at least check the facts in this article. Bugaboo buggies don’t cost nearly £1000 and the meringues at Ottolenghi are £2 not £7.50 – such blatent manipulation of easily verifiable facts makes me wonder what other figures have been altered!