I get questions regularly from folks about the homebuyer tax credits - what should they do (if anything) about repaying it, etc. Here's a brief (but not exhaustive) summary of the ground rules for each of the homebuyer tax credits. If you bought a home for sale in Lancaster, PA and beyond between April 8th 2008 and April 30th 2010 you should understand your tax situation. (I have to add the obvious statement that I am a real estate professional, not a tax professional so my observations below are not to be taken as tax advice, thank you) The first homebuyer tax "credit" was in effect an interest-free loan for 10% of the purchase price up to 00. That deal ended on January 1st 2009. If you took advantage of that program you were required to repay the federal government over 15 years of equal installments. Hopefully you knew that, because a payment was due last month with your income tax return... This homebuyer incentive program also has a mandatory repayment in full should you sell the home (or otherwise not make it your primary residence) before the 15 years is up. Bummer. The second homebuyer tax credit deal was for homes sold between Jan 1 2009 and April 30, 2010 (note that congress extended the closing date for this program until Sept 30 2010). This an 00 incentive for first-time home buyers. The caveat for this incentive was you needed to make the home your primary residence for at least three years after your closing date. Should you blow the residency ...
http://leafgardenpress.com/ Ep. 72 Paying Back The Homebuyer Tax Credits
Preschool Open House: Meet the new director. 6 p.m. July 17. Master's Academy ... Indian River Federal Credit Union, 2800 20th St. Vero Beach. Donors must present ID. ... 7:30 a.m. Aug. 18. Club at Pointe West, 7500 14th Lane, Vero Beach. $ 100-$ 375 ... Indian River County Community Calendar, updated July 13
The sad news for those who claimed homebuyer tax credit for the year 2009 as first-time homebuyers is that they will now have to repay the Fed! A report from the Tax Administration's Inspector General stated that out of 1.8 million people, 950,000 Americans are now required to repay the government.
This confusion came out, because there were two different credits for the homebuyers, depending on the time they purchased their homes. The two different forms are stated in simple terms below:
People who purchased their houses in 2008 would get $ 7,500 or up to 10% tax credit of the total purchase price, whichever was less. There was a simple catch in the whole scheme. This tax credit was actually a loan without interest and the homebuyers were required to pay this loan over 15 years.
Those who waited till 2009 enjoyed a much better deal.
What is next to adorning the platter full of problems? The IRS is all set to create a new strategy, which will be targeted towards separation of the tax payers for 2009 who must repay from those who are eligible for refund scheme.
The glitch that remains is that IRS is in serious trouble, because it is unable to differentiate between the purchases made in 2008 and the purchases made in 2009. This is a serious issue, because some buyers may start claiming that they purchased their houses in 2009 while they actually did so in 2008.
A report discloses that 4% out of 1.8 million who enjoyed the tax credit had wrong purchase dates registered with IRS. Again it happened that those who made purchases in 2009 were registered as purchases in 2008. This is a huge problem for the IRS. The problem became even more acute when a report from the inspector general showed that 1,326 people reported dead by Social Security Administration claimed credits of more than $ 10 million.
No matter what serious problems come up, the good aspect is that the foreclosure inventory is still rising. Well, it is good only for the prospective homebuyers and not the economy as a whole. This is good for these homebuyers, because they will not into the tax credit glitch and yet enjoy heavily discounted prices for the preoccupied homes.
So, if you are looking for latest news on foreclosures and want to get the most comprehensive foreclosure listing to pin point the house of your dreams at the most affordable prices, you must visit ForeclosureDataBank.com. Recommend 950,000 Americans need to repay their homebuyer Tax credit Topics
Question by john r: The new stimulus bill makes the 00 home buyer tax Credit a TRUE CREDIT that doesn't require repayment. ? My question is will the people who bought homes before the stimulus bill passes if it indeed does have to pay the $ 7500 money back because we bought before the change? Best answer for The new stimulus bill makes the 00 home buyer tax Credit a TRUE CREDIT that doesn't require repayment. ?:
Answer by peasticker
To my understanding, it is somewhat like a loan in that it is given you when you buy a home. but for the following 5 years it paid on income tax return. Go to IRS.gov website for correct answer.
Tidak ada komentar:
Posting Komentar