The Federal Tax Credits Blog

Posts Tagged ‘taxes’

Question: 4: Will Obama allow the Bush Tax Cuts to expire?

If so, he will take away from the poor the incentive to save money for retirement.

(Bush created a “saver’s credit” that affects incomes of $50,000 and less. They can put up to $2000 into an IRA and get a tax credit as an incentive. This credit will expire by 2010.)

Answer: Good questions. Seen these posted before, but maybe you can open people’s eyes.

Mary Holm: First step – Get rid of mortgage

My wife and I have a $160,000 fixed-rate mortgage, which is up for renewal next year. Our medium-term job prospects are uncertain. I’m working part-time and my wife is working full-time; however, in a year’s time my wife may…

How to Set Up a Retirement Savings Account

Question: Can I contract to buy my neighbor’s federal tax credit from installing solar panels on his roof?

Anyone know the IRS rules with respect to purchasing tax credits from another taxpayer?

Answer: I’m not sure why you would want to do this. It’s a tax credit, not a deduction, so would not change your tax bracket even if you could/did buy it. Usually, a contract has an advantage for both parties, and I’m not sure what each of you would gain in this case.

If your neighbor is short of cash to install a solar system, you could do an ordinary loan to him (even draw up legal documents). Your neighbor would repay you over time, either in several installments, or one lump sum. Presumably, the neighbor would have extra funds at tax time, because of the tax credit, with which to pay you. The federal credit is not refundable, so if the neighbor’s taxes do not exceed the credit, they will have to spread the credit out over several years.

All this said, financial deals gone wrong can make for horrible neighbor situations. You probably shouldn’t do it, unless you love them so much that you’d just give them the money, without expectation of being paid back.

Biz Briefs

Net Zero event set for June 17

WindEnergy 7 – WindEnergy7-com

Question: 2008 real estate tax credit?

I bought a home in 2008 and received a “refund” check for $7325 as I was a first time buyer. Does this money need to be paid back? Or not, as is the case with the 2009 first time homeowners credit.

Answer: Yes, the one for 2008 purchases must be paid back over 15 years starting in 2011 with your 2010 tax return.

Don’t Hold Your Breath

This is not your father’s recovery. It might not even be a recovery at all. Debunking the myths of the new American economy

First-Time Home Buyer Tax Credit

Question: A list of all homeowners and home buyers tax credits?

I am buying a home in California. It is scheduled to close this month. I know I am eligible for the $8000 tax credit. I also know that there are homeowners tax credits out there such as a credit of up to $1500 (30%) for making the home more energy efficient such as installing new windows.

Are there any Other Tax Credits that I should be aware of? I am looking at doing a lot of work on the house and

Answer: If you plan on purchasing energy efficient windows this year then you may be able to take advantage of a great new tax credit. This credit will be applied against any new window purchasing during the upcoming tax year that qualifies as energy efficient. You could receive a tax credit for up to 30% of your window purchase that caps out at a $1,500.00 credit. The windows must be used from January 1st, 2009 through December 31, 2010 The windows must meet federal guidelines to be considered energy efficient.

New doors, or skylights may qualify as well.

There are a lot of new credits out there but these are about the only relating directly to home improvements and home purchases. Remember that new credit of $8,000.00 must be repaid over the next 15 years. It is essentially an interest free loan.

Lawmakers support renewables, energy efficiency

Nevadans who buy energy-efficient houses will get big tax breaks under a proposal that won unanimous approval Friday in a key Senate committee.

Energy Tax Credit.flv

Question: How does the first time home buyer tax credit work?

My fiance and I bought a house this year so we qualify for the first time home buyer tax credit. I’m just wondering how this works exactly. We are suppose to get a certain amount back according to what we paid for our house. My question is, do taxes get deducted from the tax credit we’d be getting back for the house?

Answer: Assuming that you qualify properly in all other regards for the tax credit, you are eligible to receive 10% of your home’s purchase price, up to a maximum of $8,000. You can claim the credit when you file your income tax return for 2009, using Form 5405. Be sure to include copies of your HUD settlement statement as proof of your purchase.

Your taxes will be reduced by $8,000 for 2009’s return. If you do not owe that much, any excess will be refunded to you via the IRS. Understand, however, that the $8,000 refund is considered taxable income for 2010.

Tax credit ate 2011 home sales

What’s going on with home sales? It’s a question that concerns homebuyers, home sellers, homeowners and renters who’ve contemplated trading their rent check for a mortgage payment.

Home Renovation Tax Credit