Tax Returns | first time home buyer

February 13, 2011

first time home buyer tax credit?

tarzan asked:

I got all tax i paid last year on my tax returns.How much i will get as a tax credit for first time home buyer.

Milton

Comments (2)

January 22, 2011

Can you apply for the first time home buyer tax credit?

Filed under: Renting & Real Estate — Tags: Benefit, December 31, Elect, First Time Home, First Time Home Buyer, First Time Home Buyer Tax Credit, Home Purchases, Income Base, Magi, Php 3, Tax Filing, Tax Return, Tax Returns, Taxpayers, Time Home Buyer — admin @ 11:25 am

Don’t you get it?? asked:

Can you apply for the first time home buyer tax credit before you buy a home and use it as your down payment as long as you close before 7/1/009?
At the bottom of this website you’ll see what I’m talking about..

http://www.federalhousingtaxcredit.com/faq.php#3

If you go the website you will see that the 7500 can be given in this year or the next, and it’s income base so if you are going to get paid more this year 09 then you can claim it on your 08 return.

This is what it says…

If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

Eileen

Comments (3)

August 9, 2009

First-Time Home Buyer Tax Credit Audits

Filed under: Aesthetic Aspects — Tags: Buying A Home, Economic Mess, Federal Government, First Time Home, First Time Home Buyer, First Time Home Buyer Program, First Time Home Buyer Tax Credit, Home Buyer Program, Hurdles, Keen Interest, Parents, Rental Property, Tax Fraud, Tax Returns, Time Home Buyer — admin @ 3:23 am

Thomas Ajava asked:

The federal government has initiated a host of programs trying to rev up the government. From Cash for Clunkers to the First-Time Home Buyer tax credit, these programs have in fact revved up the auto and real estate markets. Alas, the IRS is starting to take a keen interest in those claiming the first-time home buyer tax credit and is, in fact, starting to audit returns where the credit claim is questionable.

A down payment is obviously one of the big hurdles to buying a home. Faced with a real estate market that could only be called morbid, the federal government came up with the first-time home buyer tax credit. This essentially provided $8,000 for a down payment so long as certain requirements were meant. The program has been a huge hit and real estate markets across the country are starting to come back a bit. The only problem is many people just assumed they could claim the credit so long as the home was their first. This is wrong and leading the IRS to start scrutinizing tax returns that include a claim.

I am looking to buy my first home. My parents own their home and a second rental property in town. Given the economic mess, the rental market has been down. After talking about it, we agree that I will buy their rental property as my first home. I claim the first-time home buyer tax credit, get a loan and move into my first home. Everything is fine, right? Unfortunately, it is not. I cannot claim the tax credit if I by from a related person. Arguably, I’ve just committed tax fraud!

There are a host of rules that apply to the first-time home buyer program. They are easy to understand, but few people realize they exist. Make sure to cover them with your tax professional before you buy that first home or you could really regret it.

Juanita

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first time home buyer – owner loan