The Federal Tax Credits Blog

Posts Tagged ‘buyer’

Question: Qualifying for the first time home buyer tax credit?

My wife’s mother is buying a home for us this year. Will we qualify for the 1st time home buyer tax credit if we are the sole owners of the home, even if she purchased the home?

Answer: Are you the first time home buyer that signs the mortgage on this house?

No… you are the lucky couple that receives a house as a gift from their in laws.

The tax credit does not apply to you…. you have no need for it because you are not applying it towards a down payment, mortgage and on top of that you are not the ones buying the house and obtaining a mortgage.

KB Home

KB Home reported a sharp drop in home orders for the December-to-February quarter, against year-ago results that were bolstered by a home buyer’s tax credit. Its new home orders fell 32 percent, while the number of homes it delivered sank 28 percent. The weak sales figures and several one-time charges led to a bigger loss, prompting KB management to say …

First time buyer tax credit

Question: can i file an extension if I have already filed my returns?

I have already filed my federal tax returns (about a month ago), but I am in the process of purchasing a home, and wanted to apply for the first time home buyer credit for my 2008 tax returns. Can I file an extension, then corrected returns once the home has been purchased?

Answer: no need to file a extension since you’ve already filed.once you close on the home you can file an amended tax form 1040X claiming the tax credit.you will mail in the 1040X form along with form 5405(the first time home buyer tax form.)

Believing tax myths can be a costly mistake – Sun, 10 Apr 2011 PST

Filing your taxes can be confusing. Even though it’s an annual ritual, there’s so much bad information out there that you can easily be led astray. Add a few myths to your adjusted gross income, and you can find yourself facing an unexpected bill — or worse, shortchange your own refund.

First Time Home Buyer Tax Credit Extension

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: Congress extended the home buyer tax credit to Sept30th, only if you already had a contract in place by Apr?

Is this right????? Am I pretty much out of luck?? Thanks?

Answer: You are correct, and you are out of luck. Those who had binding purchase contracts in place on or before April 30 initially had to close by June 30, 2010. Due to lender inability to get all these loans processed and closed by the June 30 deadline, Congress extended the close date to September 30 so that all who had contracts by the April 30 deadline could get to close and claim the credit. However, if you had no contract in effect by April 30, there is no extension for you.

ECR Minerals plc UK Regulatory Announcement: Final Results

LONDON–(BUSINESS WIRE)–ECR MINERALS plc (“ECR Minerals”, “ECR” or the “Company”) AIM: ECR US OTC: MTGDY FINAL RESULTS FOR YEAR ENDED 30 SEPTEMBER 2010 AND NOTICE OF ANNUAL GENERAL MEETING ECR Minerals plc is pleased to announce its audited final results for the year ended 30 September 2010. The results below are extracted from the Company’s Annual Report and Accounts 2010. Copies of the Annual …

Tax News – Home Buyer Tax Credit Extended – Denver, Co

Question: Housing Bill – New home tax credit: Impact on single salary over $75K?

I’m not sure how this Bill (HR 3221) works – I will be buying a house in the time period defined by this bill – but my salary is about $96K. It mentions “phasing out” over $75K. Will I get the $7,500 tax credit as a first time home buyer? Can anyone explain (simply – the more I look this bill up the more confused I seem to be sadly) what this would mean to someone in my position? Thank you very much.

Answer: This so called Tax Credit, is nothing more than an interest free loan. This credit has what the bill calls a “recapture” period where you have to pay the IRS back over the course of possibly 15 years the full amount of the tax credit. For example, lets say you qualify for the full 7,500 credit. The legislation says, “if a credit under subsection (a) is allowed to a taxpayer, the tax imposed by this chapter shall be increased by 6 2/3 percent of the amount of such credit for each taxable year in the recapture period. This means that 6.66667% of 7500, which is 500, is added to your tax bill for 15 consecutive years. That is a mighty attractive loan offer, but certainly nothing close to a tax savings. The real disadvantage is if you sell the house before the recapture period is over, they now accelerate your repayment and this can cause a larger than expected tax bill at the end of the year. Now to address your specific question: Based on the current legislation (remember this has not gone through conference committee and the President has NOT signed it) it appears that with a annual income of 96,000, you would be eligible for the lesser of 10% of the total home purchase price or around 6,000 dollars (quick math). The amount reduced is based on the ratio of 75,000 bearing to 20,000. I would recommend NOT claiming this Tax Credit or allowing this tax credit to influence you to buy because it does nothing but help the sellers (builders, real estate agents, etc.) If the fed really wants to help out the buyers, they need to fork up the cash and forget the repayment. Republicans don’t like this bill and I don’t like it either.

Gross Dumps Treasuries as Rally Ends

Bill Gross has dumped all Treasuries from the world’s biggest mutual fund and Warren Buffett is shifting to shorter-term debt

First Time Home Buyer Seminar