The Federal Tax Credits Blog

Posts Tagged ‘purchase,taxes’

Question: First Time Home Buyer Tax Credit or any Credit (question of primary residence)?

I have been reading the IRS website and can not get a clear cut answer of how the IRS defines primary residence. In 2008, I purchased a home for my parents about 500 miles away in another town. My name is on the deed and the mortgage as well. I do not consider this place my primary residence since I have never lived there.

In Oct of 2009, I purchased a home for myself in which I consider as my primary residence. I am looking to file the First Time Home Buyer’s credit and was wondering if I would qualify? I am not sure if the IRS considers a primary residence as just simply owning a home, in the case I do or is it a place where you actually live?

If I do not qualify for the first time home buyer tax credit, I noticed that there was a second home buyer’s tax credit available as well for $6,500. Do I qualify for this? I closed my current property about a week before the extension in November 2009. Thanks!

Answer: If you owned a home in the last 3 years you normally do not qualify for the FTHB credit. There is a newer credit for folks who upgrade their home to a new replacement home. Your circumstances are too involved to get a good answer in this forum. See a local tax pro for solid advice based on your situation. Here is the IRS form:

http://www.irs.gov/pub/irs-pdf/f5405.pdf

Manitoba Telecom Services Inc. Reports Second Quarter 2010 Results

Manitoba Telecom Services Inc. , including its two primary operating units “MTS” and “Allstream”, today reported its financial results for the second quarter ended June 30, 2010.

First Time Home Buyer Tax Credit – 30 year Fixed FHA Financing – RealEstateMarketingThisWeek.com

Question: Do you think the Existing Home Buyer Credit will be extended?

We purchased our house in September 2005 and just missed the cutoff of being in our home for 5 years to receive the $6500 tax credit.

With the news os the real estate market crashing low again since the credit is about to expire, does anyone think they will extend again?

I’ve have read mixed reviews on this.

My wife and I want to sell real bad but would rather wait fore this extra incentive than to sell and get nothing.

Answer: It’s unlikely that they will extend the credit again – unless the housing market really takes a beating in the coming months. The winter months are always rough in the real estate market, even with the credit. Probably a combination of the colder weather and the holidays and people just not that interested in house shopping. Expect the market to really pick up in March and April as the weather gets better and the current April 30 deadline to be in contract approaches. If the credit is extended, I would expect it to be a lower amount and possibly not include the credit for non first time buyers.

Remember Jumbo Loans? They’re Back!

With little to no fanfare, it appears jumbo loans are not only getting cheaper, they’re getting easier to obtain. After several years of stagnation in high-end housing, thanks to the disappearance of the jumbo market, things are moving yet again.

Zeitgeist Addendum

Question: Home buyer tax credit ext?

I understand the the first time home buyer tax credit is going to expire soon. I’m told that a contract to purchase must be in place by 4-30 and an actual closing by 6-30. Is this correct,and does anyone know if this tax credit is being considered for extension by the govt?
Thanks

Answer: Yes it is correct and no it will not be extended. It has not helped increase home sales, too many applicants are denied mortgages, fraud is running at 80%

Lawmakers: Extend tax credit for new homes

Government support for the housing market is winding down, but some Kentucky lawmakers are trying to keep it going — by extending the state’s little-used $5,000 tax credit for buyers of newly built homes.