The Federal Tax Credits Blog

Posts Tagged ‘tax credit laws’

Question: New tax credit law 7,500?

I sold my home in aug 05(divorce) and bout another in jul08 can I qualify for the tax credit Imake under 50,000 grand a yr.?

Answer: Dear Larry: The Housing Assistance Tax Act of 2008 states… had no present ownership in a principal residence during the three year period ending on the date of purchase of the home for which the credit is being claimed. If your closing was in Aug and the purchase was in July 3 years later it looks like you miss qualifying by less than one month.

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 provide. Click on my profile to read more.
Errol Quinn Enrolled Agent Master Tax Advisor

Asheville area business calendar

MANAGE YOUR MONEY: Set goals, track expenses, develop a budget and more. Meets 2:30-5 p.m. Sept. 27, Oct. 4 and 11. OnTrack, 50 S. French Broad Ave., Asheville. Free. Call 255-5166 to register. Another session meets 6-8 p.m. Sept. 30, Oct. 4 and 11, at Etowah United Methodist Church.

WFSB (live at noon): Rep. Courtney introduces legislation to extend first-time homebuyers tax credit

Question: Will they change the first time home-buyer tax credit?

What do you people think, will they increase the first-time home buyer tax credit with the new stimulus packages (if it ever actually gets passed)?

If they do, I bought my first house on January 23, would I still qualify for the larger amount even though I closed before the law passed?

I’m waiting on them to figure that damn thing out so I can file my taxes.

Answer: I just read that they may not include that credit after all… It’s a way to cut some of the unnecessary stuff out. (go figure, something that would help real people) I don’t have a good answer for you, because I am wondering the same thing. I bought in December.

The original plan is a $7500 tax credit for people who buy your first home between April 8, 2008 and before July 1, 2009. It must be paid back over 15 years.

The stimulus package was supposedly going to make it a true credit vs. a loan. Keep your eye out for details just in case it goes through. Then it would be worth taking.

Or, put the $7500 into a savings account that earns 3% for 15 years. Take 500 out per year to pay it back. At the end, you will have approximately $1761 paid to you in interest.

Michigan continues tax credit for donated vehicles

Michigan motorists who donate vehicles to charities can continue claiming a state tax credit.

Understanding the First Time Homebuyer Tax Credit