The Federal Tax Credits Blog

Posts Tagged ‘tax’

Question: Will the 10% tax refund I receive for being a first time homeowner in 2009 count as income in 2010?

I’m not sure how tax stuff works, but I was curious if the 10% (up to $8000) credit that I receive on my 2009 tax refund for being a first time homeowner will count as income in 2010 that I will have to pay taxes on on my 2010 taxes?

Answer: As long as you live in the home for at least 3 years no.

And did you know you can amend your 2008 return and get the $8,000 sooner?

Helen, EA in PA

Missouri City officials cite 2009 achievements for “Show Me City”

Missouri City, officially branded the “Show Me City,” continued to build on past successes and stack up additional achievements in 2009, including strengthening the budget, standing proud with citizens and steering a course toward an even stronger future.

Homebuyer Tax Credit November 2009

Question: Can I get energy star tax credit if I buy windows but then move a month after they are installed?

I am going to install energy star windows in my home this month and would like to claim the 30% tax credit. Here is the hang-up I am not sure about:
I am planning to move a few weeks after they are installed. So when I do my 2009 taxes I will not longer be living in the home the windows are in. So they are being purchased and install while I live there but then when I claim the credit this house will no longer be my “principle residence.” Anyone know the rule for this? Can I still get the credit?

Answer: “at the time of installation, the dwelling unit is owned and used by the taxpayer as the taxpayer’s principal residence (within the meaning of § 121)”

It will be up to you to defend in an audit that you hadn’t moved until 3 weeks after the installation. You will have the paperwork showing the installation was completed, on say June 1st and the moving expenses showing you moved your stuff on August 1st…. If, on the other hand, you have paystubs showing you were already working in another state in May, you’d flunk.

(Presumably the buyer is demanding new windows? Or you think it will sell/rent better with them? It’s not like the credit is 100% of the money spent….)

Shutterman’s product comes with tax advantage

Greg Swartz said the best advertising for his small business doesn’t cost a dime.

Andersen Windows Radio Session July 10, 2009

Question: 7500 first time home buyer credit a good deal?

I have just purchased my first home with my fiance. ( Our wedding day is May 02, 2009 =) ) and have heard about the new tax credit for first time homebuyers. I have read all the information about it & realize that you have to pay it back for 15 years at $500 a year which basically makes a zero interest loan. My question is whether it is a wise idea to take this loan. I know if you invest it that you could actually make money off of it but I would use it to pay off the rest of my car, and three seperate credit cards. The total balances on all these bills will be about $6500 in march. Is this a good way to use the money?

also our house is in my name and his name. Neither one of us ever owning a house before. How does the credit work. Him half and me half or all to just one of us??

Any answers or opinions Please. I would love to know what you guess think. Thanks!

Answer: The credit will help you with your down payment, you need to get it to 20%.

As far as the loan, you will get one loan, which you both pay. There are no halfs.

NAR Home Buyer and Seller Survey Shows Value of Long-Term Home Ownership

NEW ORLEANS, LA–(Marketwire – 11/05/10) – Home buyers today have affirmed a long-term view of home ownership, the typical seller is experiencing positive returns and the vast majority of home owners see their property as a good investment, according to the latest consumer survey of home buyers and sellers. The study was released here today at the 2010 Realtors Conference & Expo. The 2010 …

Property WANTED Northport/North Greenlawn

Question: How does the new homeowner tax credit affect my regular refund?

I am planning on buying a house next month and would qualify for the 7500 tax credit. I usually have a 4-500 tax refund when I file my taxes, so can I expect to receive 8000 next year?

Answer: Yes, but you have to pay it back.

All things being equal, you would receive $7500 more in 2008 and then $500 less for the next 15 years.

Also, if you sell the house before the 15 years are up, you have to pay back the remaining balance right away.

Hawaii first in nation to require home solar water heaters

HONOLULU — Most new homes in Hawaii will need to come with a solar water heater under a law that takes effect today. The legislation is one of only a handful of new laws that kick in on this New Year’s Day.

Foreclosure consequences

Question: penalty for debt write off…never receive notice to report to IRS and not sure if debt is mine.?

I have a Creditor that has written off a past due debt. The Creditor has reported to IRS the amt of write off and claims that it is an account of mine. This is 2007 the write off is for 2005 in which the Creditor claims to have sent me something to claim on my Taxes for 2005. I haven’t seen anything inregard to claiming any interest on my taxes. I did not recognize said Creditor on IRS letter and I have written a letter to the Creditor with no response and it has been over 30 days now. I’ve review my Credit Report and did not recognize any such creditor or amt said write off listed on the IRS letter. IRS is stating I owe them 800 dollars due to not reported interest.
I have no proof that this account is mines. What can I do?

Answer: This is probably the Cancellation of a debt, and not a writeoff. There is a difference between cancelling a debt (you don’t owe it anymore) and writing it off (they don’t think they can collect it from you). A cancellation of debt is taxable because in essence the creditor paid the debt for you. A bad debt writeoff is not taxble to you as they can still come after you later if they think they can collect it.

Contact the IRS and tell them you don’t think the debt was yours. They should be able to tell you how to appeal the assessment. Meanwhile contact the creditor directly and find out what the debt was for. It may be that the debt has changed hands or the creditor has changed names.

Cybercrooks stalk small businesses that bank online

A rising swarm of cyber-robberies targeting small firms, local governments, school districts, churches and non-profits has prompted an extraordinary warning. The American Bankers Association and the FBI are advising small and midsize businesses that conduct financial transactions over the Internet to dedicate a separate PC used exclusively for online banking.

Personal Financial Planning Tips : How to Obtain a Copy of Your Credit Report