The Federal Tax Credits Blog

Posts Tagged ‘irs’

Question: $8000 new home-buyer tax credit applicable if buying from deceased family member’s trust?

My grandmother passed away and I am looking to purchase her house. The house now belongs to her trust, ‘the estate of …’. I will need to take out a $185,000 loan even with a down payment of over 20%.

IRS tax form 5405 states: “Who Cannot Claim the Credit” “You acquired your home from a related person. A related person includes: Your spouse, ancestors (parents, grandparents,
etc.), or lineal descendants (children, grandchildren,
etc.).”

It sounds pretty clear that if she was alive, I would not qualify. But by my interpretation of the wording, I am not buying this from my grandparent, a person; I am buying it from her trust/estate, an entity.

Do I qualify for the credit? If possible, please reference your answer. Thanks in advance!

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Answer: No….you don’t qualify. A family trust is still considered related because it belonged to your grandmother.

When your grandmother died, who inherited the house? If a non-relative got the house then you can purchase the property and get the tax credit.

Durham: Real Estate

Q: I was unable to close my tax credit sale prior to the June 30 deadline. Was the closing date extended for the tax credit home sales?

Learn About The First-Time Homebuyer’s Credit

Graduates’ First Task: Setting Plan to Manage Debt Load

Like carrying unwanted pounds, many college graduates pack on a hefty load of student loan debt during their four years.

Free Credit Card Debt Reduction Calculator – Download It Free.

Question: Frist Time Home Buyer?

My husband and I are in the process of buying our first house. We are long time renter (8+ yrs), living in Oakland, CA. Our new house will also be in Oakland, CA. Our combine gross income (before tax) is about $100K. What are the available credit/benefit (city, state, federal) that we qualified?

Answer: You would only qualify for the state credit, which is 10k, nothing for Oakland.

U.S. bleeds cash via tax breaks even as deficit soars

Dallas physician Steven Davidoff doesn’t fit the stereotype of someone who needs a housing subsidy: raised in wealthy Plano, Texas, educated at Tulane University Medical School, working as a pulmonary critical care physician.

First Time Home Buyer Program, $8000 Tax Credit, Buy Foreclosures Cheap with FHA Mortgage

Question: Is now the time for me to refinance and consolidate by debt?

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

Answer: I believe you are asking the wrong question. You need to ask can I afford this house. You had to borrow money to pay taxes and insurance. they are going to occur every year and most likely increase each year. It is mandatory to be setting aside money each month so when you get the tax and insurance bill you have the cash to pay them. If you would have financed through a conventional channel you would be required to pay that money into an escrow account monthly in the form of a higher house payment.

You need to immediately get on a budget setting aside that money in a separate checking account each month or you will eventually get swallowed up by debt. Cut your lifestyle a little and pay that HELOC off in the next year or two and start setting aside the money for taxes and insurance.

North Bay daycare operator faces jail

NORTH BAY — Some daycare workers relied on their wage subsidy to make mortgage payments or cover food bills, while others thought it would help with their own child-care expenses, a North Bay court heard Monday.[...]

Senate Session 2010-04-19 (15:56:28-16:47:53)

CenterPoint Energy Reports Second Quarter 2010 Earnings

CenterPoint Energy, Inc. today reported net income of $81 million, or $0.20 per diluted share, for the second quarter of 2010 compared to $86 million, or $0.24 per diluted share, for the same period of 2009. Â Operating income for the second quarter of 2010 was $263 million compared to $253 million for the same period of 2009.

New $6500 Tax Credit for Current Homeowners