The Federal Tax Credits Blog

Posts Tagged ‘homes’

Question: Home Buyers Tax Credit?

The program is expanded to include a $6,500 credit for existing homeowners who buy a new place after living in their current residence for at least five years.
Can I still apply for this if I bought a house in May 2009?

Answer: this law hasn’t passed yet
and the extension dates may change
wait til the law passes to find out for sure

Expanded Home Buyer Tax Credit

Question: If my parents get a home equity loan for me to buy a condo in cash, can I simply pay their monthly payments?

I would like to purchase a non-warrantable condo (due to a minor litigation in the building) that has been foreclosed on. I would have to pay cash as the litigation will not close before the November 30th first time home-buyers credit expires and I would like to get it at a reduced price. I plan on securing a traditional mortgage once the lawsuit has been cleared, but until then I only have approximately 60,000 of the 150,000 necessary for a proper offer (The parents’ loan would supply the rest).

I realize it cannot be considered a gift as it is much larger than 12,000 and I will be paying the monthly payments/paying off the loan once I get a mortgage. I am worried of the tax repercussions for myself/my parents as the loan will only be open for 2-6 months.

Answer: to be safe, write up an agreement on this loan, terms, dates, time etc and be sure to state some amount of interest
This probably will not ever happen but it is safe to state this interest because if it is not, it will be imputed by IRS at some time in the future
one never knows how long a law suit may last and your purchase seems to be contingent on this event

First Time Homebuyer Tax Credit

Question: Will the Obama stimulus package affect my first time homebuyers credit?

i am about to file my taxes and will be taking the first time home buyers $7500 credit (loan). I bought my first home in july 08 . But today i see that the senate is going to ok a $15000 credit. Will this also involve the poeple that bought a home last year or only people that buy a home this year?should i wait to file so i dont have to refile?

Answer: I suggest you go ahead and file. It could take a long time for any bill to pass. Go ahead and get what you have coming to you. The software is already set for the 2008 tax season for the $7500 credit. If they do come up with any changes it should have to be handled on an amended tax return.

So don’t wait. We will have to see what kind of bill gets passed and then they will have to set up programs to be able to handle any adjustment to the current credit.

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.

2009 – It was a Great Year! by Greg Reese – A 30 Second Review!

Question: First time home Buyers Tax Credit of $8000 for deployed military personnel?

My husband is currently deployed, and we are looking to buy a house in the near future. I’m wondering if the new first time home Buyers Tax Credit would apply to deployed military personnel who do not pay taxes due to their deployment. My husband is exempt from paying taxes during the time of his deployment. Would we still be able to take advantage of this new stimulus bill anyway? Any information in regards to this situation would help a lot. Thanks in advance.

Answer: Yes you and he could take advantage of the credit as long as you close on a house by the end of November 09.

He isn’t exactly exempt while he’s deployed, but his military pay isn’t taxed that he earns while he’s in an overall area defined as a combat area, like Iraq and Afghanistan .

Tax Refunds on Hold for Some Homeowners

(New York Times) — Taxpayers who bought a home in 2008 and took that year’s version of the first-time home buyer credit on their federal tax return may face delays in getting their refunds this year. Here’s a refresher: The earliest version of the first-time home buyer credit — for homes bought from April 8, [...]

Question: What info do I need to claim my first time home Buyers Tax Credit?

I just found out that I can’t E-File my return. So what info do I need to send along with my tax stuff? Do I need info on my home or how does all that work?

Answer: In addition to the Form 5405, you need a copy of the settlement sheet from your purchase. I’ve been told we can expect to wait 4-8 weeks for a refund with this tax credit. This really sucks.

Tax Time

WASHINGTON — This year’s tax season will look a lot like last year’s, with a few sweeteners added. Most of the tax changes that were put in place in 2009 to spur the economy remained in effect in 2010, even though the recession was officially declared over.