The Federal Tax Credits Blog

Posts Tagged ‘tax’

Question: Qualifying for the first time home buyer tax credit?

My wife’s mother is buying a home for us this year. Will we qualify for the 1st time home buyer tax credit if we are the sole owners of the home, even if she purchased the home?

Answer: Are you the first time home buyer that signs the mortgage on this house?

No… you are the lucky couple that receives a house as a gift from their in laws.

The tax credit does not apply to you…. you have no need for it because you are not applying it towards a down payment, mortgage and on top of that you are not the ones buying the house and obtaining a mortgage.

KB Home

KB Home reported a sharp drop in home orders for the December-to-February quarter, against year-ago results that were bolstered by a home buyer’s tax credit. Its new home orders fell 32 percent, while the number of homes it delivered sank 28 percent. The weak sales figures and several one-time charges led to a bigger loss, prompting KB management to say …

First time buyer tax credit

Question: how to increase short run stimulus in ECONOMICS?

A. A family uses the tax cut to save for its children’s college education.

B. A family uses the tax cut to buy U.S. Savings Bonds.

C. A family uses the tax cut to take an unplanned vacation to Disney World.

D. A family uses the tax cut to pay off its credit card debt.

Answer: C. a family uses the tax cut to take an unplanned vacation to Disney World.

A short run stimulus is designed to increase current consumption of goods and services; the purpose is to generate demand, which would increase output and employment.

Of the possible answer choices, this is the only one that would increase current consumption.

Key federal election campaign promises so far from the federal parties

A summary of major promises made to date by the parties in the May 2 federal election campaign:

Weekly Address: Tax Cuts Kicking In

Question: FHA home loan… two years tax returns very different income amounts?

I want to get an FHA home loan…I know they loan you about four times your yearly income… my 2008 tax return was $23,000..my 2009 income tax return was $80,000…yeah i know big difference… what income will they go by?? the average income between the two years (a little over $50,000) or will they go by $80,000?? I have excellent credit, no car loans, no credit card payments.

Answer: When an FHA underwriter takes a look at your loan application, they do nothing so simplistic as take “one year” of your income statements, or combine an average of two years.

The real question is, what accounts for the income difference? If you switched to a higher paying job (in the same career) within the span of that year, that will be a benefit on your application. If you switched careers (even if is a higher-paying career; it will most likely negatively impact your application because you will be seen as a higher-risk application due to recent career change (studies indicate the first year of a new career have the highest attrition rate).

If the change in income is due to you previously being unemployed or self-employed that, again, will be a negative impact on the application.

They will look at all your tax returns and income statements since you first began declaring taxes to get an accurate assessment of your monetization patterns, spending habits, etc.

The most important thing you can do at this point is use your new income and save as much as you can so you can increase the down payment (usually no more than three and a half points,but you can win more favorable loan terms and lower amortization rate at four and three quarters points).

In conclusion: There is no easy answer to your question. The algorithm they use down there is very complex, and it will most likely include all your past income statements, as well their modeled projections for your future income (i.e. sec 4.3 your ability to pay over time).

Emanuel Having A Tough Couple Of Days

It might be a bit premature to say the honeymoon is over, but the past 24 hours haven’t been great for Mayor-elect Rahm Emanuel.

FHA Loan Limits & 1st Time Homebuyer Tax Credit

Greens pledge carbon tax, corporate tax hike

Elizabeth May says a Green Party government would raise corporate taxes to 2009 levels, charge $60 a tonne for carbon emissions – and legalize pot.

Renewable Energy Tax Credits are Huge for Solar, Geo Thermal Heat Pumps and more

Question: can i file an extension if I have already filed my returns?

I have already filed my federal tax returns (about a month ago), but I am in the process of purchasing a home, and wanted to apply for the first time home buyer credit for my 2008 tax returns. Can I file an extension, then corrected returns once the home has been purchased?

Answer: no need to file a extension since you’ve already filed.once you close on the home you can file an amended tax form 1040X claiming the tax credit.you will mail in the 1040X form along with form 5405(the first time home buyer tax form.)

Believing tax myths can be a costly mistake – Sun, 10 Apr 2011 PST

Filing your taxes can be confusing. Even though it’s an annual ritual, there’s so much bad information out there that you can easily be led astray. Add a few myths to your adjusted gross income, and you can find yourself facing an unexpected bill — or worse, shortchange your own refund.

First Time Home Buyer Tax Credit Extension