The Federal Tax Credits Blog

Posts Tagged ‘buyer’

Question: Was the half a billion in fraud the basis for why Obama decided to extend the 1st time home buyer credit?

Together, fake or faulty claims for the $8,000 refundable tax credit may have cost the government up to half a billion dollars so far, investigators told the Ways and Means subcommittee.

http://www.politicsdaily.com/2009/10/22/four-year-old-got-first-time-homebuyer-tax-credit-panel-told/

Russell George, an inspector general with the Treasury Department, told the subcommittee about the most brazen instances of bogus claims that he had come across since the IRS created a filtering system last May to weed out suspicious applications.

George said he had found nearly 20,000 returns for people who may not have actually purchased homes; thousands for people who already owned homes; 3,200 taxpayers who could not prove they were in the country legally; and an unspecified number of IRS employees wrongly applying for the credit.

Answer: According to Obam Fraud= Good.

Roger Schlesinger’s Four Points

Question: Must you sell your existing home by a deadline to qualify for 6500 home buyer credit?

We certainly qualify if we close on a new home before July 1, 2010. But, must we also have closed on the sale of our existing property (have owned as primary residence since 2001)? Put another way, if we close on a new home on June 15, 2010, can we get the tax credit if our existing home is still for sale on the market?
Well I wish I know any of you personally so I could judge, because I’m just as confused as before… thanks for the answers.

Answer: Not as the tax credit is written. Both sale and purchase must close on or before June 30, 2010. If your existing house is not sold, you do not qualify.

Question: I just bought a house, how do I get the first-time home buyer tax credit?

I purchased a house recently. I met the deadlines for the tax credit; I had a signed offer before the end of April, and I closed shortly after that (deadline for closing is end of June, I believe). I filed my taxes before I bought the home. So now I’m assuming I need to ammend them. I used turbotax, can I use this same program to file the first-time home Buyers Tax Credit? Do I need any special forms? Which ones? Would you advise to possibly wait until next year and file it with my 2010 taxes?

I just need some direction… a place to start so I can get the ball rolling on getting some money back before Obama spends it all! Any resources are also appreciated. Thanks

Answer: the 4506 has to be submitted with your amendment and that form spells out the papers you need to submit with it and no this cannot be done efling, has to be manual
before he spends it all? you don’t think it has already been spent and generations down the line will pay?

Seven Ways to Make Sure You Meet Your Home Buyer Tax Credit Deadlines

Question: Is it true that you get your $8000 check in the mail 2 months after you go to close on the buy new home credit?

someone at work told me they bought a new home couple weeks ago. and went to close . he said he will receive the $8000 check in the mail in about 2 months for the new home Buyers Tax Credit. is this true. because i thought you had to put it in when you file your taxes next year.

Answer: You either have to file an amended 1040X form for your 2008 taxes or wait until you file your 2009 taxes. If he filed the 1040X, two months sounds about right.

Rent to Own Homes Explained – Atlanta Georgia, GA

Question: 1 year work history, was in college prior, will I be qualified for an FHA home loan?

I have been working for about 1 year now. 8 months at my current job and 4 months at an older job. Both jobs are in the same line of work and my pay increased moving from the first job to the second. Prior to that, I attended a community college for 2 years. My field of study in college is not the same as my current field of work, but I’m not sure if that matters? I did not get my A.A. degree because things came up and I had to leave school to go to work. I only have 1 year of income tax returns, but have $8000 saved up for closing costs (my parents are willing to pay the downpayment as a gift). I make $2220 a month before taxes and have no debt whatsoever. Credit score is in the range of 550-600 as I applied for a credit card not to long ago. My question is: under these circumstances, what are my chances of being accepted for an FHA home loan? I am planning to buy a house in the $75,000 – $80,000 range. Thanks.

Answer: Job wise you are fine. You will just need to provide documentation that you were in college prior to your one year job history. The credit score is what will get you. Most investors who buy the FHA loans after closing will not accept a middle score below 620. Get that score up to show you know how to manage money & are a responsible person. Applying for one credit card would not do that much damage to your scores. You have some other issues. Clean it up.

Good luck.

CHARMING 3 BEDROOM 2 BATH HOME IN A FANTASTIC NEIGHBORHOOD!