The Federal Tax Credits Blog

Posts Tagged ‘home’

Question: Cashing in a savings bond — Tax Concern?

When I was young, my grandma would buy me (and my brothers) US Savings Bonds. I am now a grown man, and I am still holding on to them. Well, I have some home improvements coming up, and I could take out a home equity loan or line of credit to pay for them. But I’ve got these savings bonds sitting there just collecting dust. So I could cash them in and offset the amount of equity I’d have to use for these improvements. But here is my concern. I know that if you cash them in, you have to claim the interest earned on your federal taxes. So let’s say I have a $2500 savings bond that is now worth $5000 (so it has earned $2500 in interest). If I would cash that in, how badly would I get hurt come tax time? Can anyone tell me approximately what percentage of that $2500 I would end up having to give back to Uncle Sam? I am just trying to avoid getting myself into trouble, where I’ll end up owing $2000 next year. That would pretty much defeat the purpose of cashing them in.

Answer: The percentage you would pay would be based on your other income, it’s hard to say without knowing your situation. On $2500 it would range from about 10% up to 35% depending on your income. Most people about 15%.
A way around this for the future, if your children get savings bonds, you can file a tax return for the child each year, declaring the amount of interest the bond earns that year. Unless your kid is quite wealthy they won’t pay any tax yearly and when time comes to cash the bonds they will already have been declared and no tax is due.

Study Calls State Center Project a $127 Million Taxpayer Handout – By Megan Poinski

Megan@MarylandReporter.comThe first part of the public-private partnership State Center project in B…

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Scott Robinson from Apple HVAC discusses tax credits

Fraud Prevention Efforts Recover $4 Billion (01/24/2011 Press Conference)

Question: When will we know if $8000 tax credit for first-time home buyers will be extended to 2010?

I’m a first-time home buyer and am interested in purchasing a home, preferably next year rather than this year, if the $8K tax credit is extended. Does anyone know the timing on when one of the bills is expected to be passed? I would rather know this summer to determine if I can wait or not.

Answer: not until way into fall. I would not expect any news until around Halloween.

A new bill has been introduced which would increase credit to $15,000 and extend it 12 months. But that bill is in committee and no one knows if it has much of a chance.

Google Profits From Tax Credit for $750 Million Energy Plan

Google Inc. (GOOG) plans to ramp up its $750 million investment in clean energy projects by taking advantage of tax rules to channel more funds into wind, solar and other renewable power sources.

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USAutomtic 020330 Medium 300 Solar Charged Automatic Gate Opener Single Gate Basic Kit $875.05 Includes: 1x Sentry 300 Gate Opener 1x Solar Panel Kit 1x Charge Cable Extension Kit…

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Real Estate Financing – FHA Mortgage and First Time Home Buyers – RealEstateMarketingThisWeek.com

Question: What exactly is the $8,000 tax credit that is in the stimulus bill for 1st time home buyers?

According to what I just read on Yahoo “First-time homebuyers could get a tax credit of up to $8,000 if they buy homes between Jan. 1 and Dec. 1.” What does this mean for first time home buyers? Also, how do I know if this has been approved? I was unsure by how they article was worded.

Thanks:)

Answer: Actually, this is the Senate and House’s compromise in the Economic Stimulus package. If ratified by Obama on Feb 16, it will provide first-time homebuyers who purchased a home between Jan 1 and Dec 31 2009, a credit of $8000 against their ‘09 federal tax liability. It would not have to be repaid. Currently, there is a $7500 tax credit (interest-free loan) available to first-time homebuyers who purchased during April 1 2008 through June 30, 2009. That is required to be paid back over time, although it does not depend on your federal tax liability – it is a guaranteed check for the full amount. Obama signing the new legislation would eclipse the old $7500 tax credit.

International Forecaster July 2011 (#3) – Gold, Silver, Economy + More

Government debt will be in the vicinity of $1.5 trillion this year. Ever since May 16th short-term debt has been frozen at about $14.3 trillion. Up until May 16th the year-to-debt fiscal debt was $783.135 billion.

Stimulus Plan Benefits to Home Owners

Question: New homeowner tax credit question…?

We are closing on our house in March of 2009. Does that mean that we will get the tax credit this year (2009) when we file our taxes? Or in 2010? PS……we are building our house and construction began on it in September 2008.

Answer: You will receive the tax credit for the year in which you officially close and take possession of the property. Just make sure you keep good documentation of all escrow paperwork and receipts. I still have mine and I bought 20 years ago.

News, briefly

See what’s happening in and around Kingston.

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