wahomeowners asked:
This video has been updated. Please view the updated version here: www.youtube.com
Jessie
January 19, 2011
January 15, 2011
First Time Home Buyer Tax Rebate Extension
Jim Ingersoll asked:
Nearly 1.5 Million people have taken advantage of the $8,000 tax rebate since it’s conception in January 2009. The tax credit has been available to all first time home buyers. The first time home buyer is defined as anyone who has now owned their own home for three consecutive years. Oh, one more criteria for eligibility… It must be for your primary residence which is unfortunate for investors. The credit is in the form of a tax rebate for 10% of the purchase price of the home, up to a total of $8,000. One of the great benefits of the tax rebate is that is FULLY refundable to the buyer. For instance if the first time home buyer owed no taxes on their taxes, then the first time home buyer can amend their tax return and capture the full $8,000.
The tax rebate has helped improve the national home sales. The current tax rebate is set to expire on November 30, 2009. This means that the purchase must be fully closed and completed in order to qualify. It typically takes approximately 30 days to close on a home transaction with conventional bank financing. The point is that in order to be confident your purchase will qualify you should plan to be under contract to purchase your home by November 1, 2009. If you are trying to capture the $8,000 tax rebate and have not yet put your home under contract or you dont qualify for conventional financing then you need to consider finding an alternate approach. One alternate approach is to find seller financing. If the seller is providing the financing and you do not need to wait the typical 30 days for bank financing, then you can still close by December 1, 2009 without many challenges.
What about the possibility of extending the rebate past December 1, 2009? There are currently several bills in Congress that would allow the extension. Each of the bills in Congress provide alternate solutions toward the extension. Of course there is a lot of politics involved in completing the extension, from all poitical parties. Here is a brief summary of the extensions:
S1230: Senator Johnny Isakson introduced Senate Bill 1230 in June. The Bill proposes a tax credit up to $15,000 that can be split over 2 year for everyone who purchases a home for their personal residence.
HR 2619: This one proposes to extend the existing $8,000 tax credit to July 1, 2010 and adds provisions for a tax credit of up to $3,000 for homeowners who refinance. This would certainly create a ton of refinances. Is this part of the recent mortgage issue? Many Americans seem to use their home equity as an ATM machine, pulling it out and spending it. I guess that would potentially help spur the ecomony in the short term.
HR 2801 – Similar to S1230 but it extends benefits to January 1, 2011.
Several key politicians are publicly making comments about getting the extension approved by early November. Those making positive comments include Senator Bill Nelson of Florida, Senate Majority Leader Harry Reid and Senate Finance Committee Chairman Max Baucus. They are hoping to extend the rebate along with unemployment benefits at the same time.
One thing for sure is our current Government is committed to spending an unlimited amount to try and stimulate our economy. Our Leaders appear to be committed to short term gains at the expense of future generations. That said, extending the first time home buyer credit will certainly help encourage American’s to own their own home.
Lucille
Nearly 1.5 Million people have taken advantage of the $8,000 tax rebate since it’s conception in January 2009. The tax credit has been available to all first time home buyers. The first time home buyer is defined as anyone who has now owned their own home for three consecutive years. Oh, one more criteria for eligibility… It must be for your primary residence which is unfortunate for investors. The credit is in the form of a tax rebate for 10% of the purchase price of the home, up to a total of $8,000. One of the great benefits of the tax rebate is that is FULLY refundable to the buyer. For instance if the first time home buyer owed no taxes on their taxes, then the first time home buyer can amend their tax return and capture the full $8,000.
The tax rebate has helped improve the national home sales. The current tax rebate is set to expire on November 30, 2009. This means that the purchase must be fully closed and completed in order to qualify. It typically takes approximately 30 days to close on a home transaction with conventional bank financing. The point is that in order to be confident your purchase will qualify you should plan to be under contract to purchase your home by November 1, 2009. If you are trying to capture the $8,000 tax rebate and have not yet put your home under contract or you dont qualify for conventional financing then you need to consider finding an alternate approach. One alternate approach is to find seller financing. If the seller is providing the financing and you do not need to wait the typical 30 days for bank financing, then you can still close by December 1, 2009 without many challenges.
What about the possibility of extending the rebate past December 1, 2009? There are currently several bills in Congress that would allow the extension. Each of the bills in Congress provide alternate solutions toward the extension. Of course there is a lot of politics involved in completing the extension, from all poitical parties. Here is a brief summary of the extensions:
S1230: Senator Johnny Isakson introduced Senate Bill 1230 in June. The Bill proposes a tax credit up to $15,000 that can be split over 2 year for everyone who purchases a home for their personal residence.
HR 2619: This one proposes to extend the existing $8,000 tax credit to July 1, 2010 and adds provisions for a tax credit of up to $3,000 for homeowners who refinance. This would certainly create a ton of refinances. Is this part of the recent mortgage issue? Many Americans seem to use their home equity as an ATM machine, pulling it out and spending it. I guess that would potentially help spur the ecomony in the short term.
HR 2801 – Similar to S1230 but it extends benefits to January 1, 2011.
Several key politicians are publicly making comments about getting the extension approved by early November. Those making positive comments include Senator Bill Nelson of Florida, Senate Majority Leader Harry Reid and Senate Finance Committee Chairman Max Baucus. They are hoping to extend the rebate along with unemployment benefits at the same time.
One thing for sure is our current Government is committed to spending an unlimited amount to try and stimulate our economy. Our Leaders appear to be committed to short term gains at the expense of future generations. That said, extending the first time home buyer credit will certainly help encourage American’s to own their own home.
Lucille
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January 3, 2011
Can I file my taxes online myself if I’m getting the $8,000 tax credit for being a First Time Home Buyer?
George K. asked:
How does that work? Will I be able to do it online or will I have to take it to H&R Block or something? And will the government send me some kind of paperwork I’ll need or how do I go about proving I’m a first time home buyer?
Brandon
How does that work? Will I be able to do it online or will I have to take it to H&R Block or something? And will the government send me some kind of paperwork I’ll need or how do I go about proving I’m a first time home buyer?
Brandon
December 26, 2010
have you got your tax credit check from first time home buyer?
jessica d asked:
has anyone gotton thier check yet,that was for the 2009 first time home buyer credit
Joan
has anyone gotton thier check yet,that was for the 2009 first time home buyer credit
Joan
December 21, 2010
Am I qualified for the new first-time-home-buyer $7,500 tax credit?
drl2468 asked:
I am in the process of a short-sale house purchase. The house then will be rented back to the current owners with the hope that they can eventually re-purchase it.
I am in the process of a short-sale house purchase. The house then will be rented back to the current owners with the hope that they can eventually re-purchase it.
My question is whether this purchase qualifies for the $7,500 tax credit in the new federal housing law. I have rented myself for many years, so I am a first-time buyer. However, I will not use the newly purchased house as my principal residence, which seems to be another requirement. Any help is appreciated
Jo
December 18, 2010
Benefits For First Time Home Buyers
Yanni A Raz asked:
Are you a first time home buyer in the market to purchase the home of your dreams? You may not be aware that there are many benefits in home purchasing as a first time buyer. The Government has been working together with first time home buyers, to help them save money and purchase something at a reasonable price, by giving them grants to be used toward the purchase of their first home.
A tax credit of up to $8000.00 is granted to first time buyers. This is all part of the Recovery and Reinvestment Act of 2009, something that will not only benefit first time home buyers, but will also help to stimulate the economy and get out of this recession. IN order to qualify for this offer, you must first make a purchase on or before January 1, 2009 and before December 1, 2009. The purchase date will be the date the house closes escrow.
Qualifying for the credit is simple. You are considered a first time buyer if you have not purchased a property 3-years prior to the date of purchase. Keep in mind, if you are married, and your significant other has in fact made owned a home in the last 3 years, neither of you will qualify for the credit. If an unmarried couple wants to take advantage of the tax credit, and one of them owned a home in the last 3 years, the one who has not owned will still qualify, the tax credit will then be transferred to the qualifying party.
The tax credit is based on 10 percent of the purchase price, but will not exceed $8000.00.
Qualifying for this benefit is also based on your income. Married couples should have a joint income of at least $150,000 with unmarried couples at an income of $75,000. Also keep in mind, that this tax credit does not have to be repaid. The tax credit is claimed on your Federal tax return form 5405, this will determine your tax credit amount, which you will then want to claim on your 1040 income tax form, line 67. If you have purchased a house in 2009, and received the tax credit toward your purchase, you can choose to claim it against your 2008 tax return or wait to claim it on your 2009 return. If you have filed your 2008 return prior to your purchase, you may amend the tax return if you do not want to wait until the 2009 tax season. This is something you would want to ask your tax professional about prior to making a decision. Also, the home that you purchase, must be used for your principle residence for at least 3-years, or the IRS may try and take the $8000.00 credit back from you. Vacation homes do not count as a principle place of residence.
This $8000.00 tax credit can be used towards your down payment. Again, something you would want to speak to your tax professional about. Time is running out for this great opportunity, so seek the proper advice and make the choice that is right for you.
Stella
Are you a first time home buyer in the market to purchase the home of your dreams? You may not be aware that there are many benefits in home purchasing as a first time buyer. The Government has been working together with first time home buyers, to help them save money and purchase something at a reasonable price, by giving them grants to be used toward the purchase of their first home.
A tax credit of up to $8000.00 is granted to first time buyers. This is all part of the Recovery and Reinvestment Act of 2009, something that will not only benefit first time home buyers, but will also help to stimulate the economy and get out of this recession. IN order to qualify for this offer, you must first make a purchase on or before January 1, 2009 and before December 1, 2009. The purchase date will be the date the house closes escrow.
Qualifying for the credit is simple. You are considered a first time buyer if you have not purchased a property 3-years prior to the date of purchase. Keep in mind, if you are married, and your significant other has in fact made owned a home in the last 3 years, neither of you will qualify for the credit. If an unmarried couple wants to take advantage of the tax credit, and one of them owned a home in the last 3 years, the one who has not owned will still qualify, the tax credit will then be transferred to the qualifying party.
The tax credit is based on 10 percent of the purchase price, but will not exceed $8000.00.
Qualifying for this benefit is also based on your income. Married couples should have a joint income of at least $150,000 with unmarried couples at an income of $75,000. Also keep in mind, that this tax credit does not have to be repaid. The tax credit is claimed on your Federal tax return form 5405, this will determine your tax credit amount, which you will then want to claim on your 1040 income tax form, line 67. If you have purchased a house in 2009, and received the tax credit toward your purchase, you can choose to claim it against your 2008 tax return or wait to claim it on your 2009 return. If you have filed your 2008 return prior to your purchase, you may amend the tax return if you do not want to wait until the 2009 tax season. This is something you would want to ask your tax professional about prior to making a decision. Also, the home that you purchase, must be used for your principle residence for at least 3-years, or the IRS may try and take the $8000.00 credit back from you. Vacation homes do not count as a principle place of residence.
This $8000.00 tax credit can be used towards your down payment. Again, something you would want to speak to your tax professional about. Time is running out for this great opportunity, so seek the proper advice and make the choice that is right for you.
Stella
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