First Time Home Buyers Tax Credit [creditdiagnosis]

First Time Home Buyers Tax Credit [creditdiagnosis]

Highlights of the updated First Time Home Buyer Federal Tax Credit included in the recently signed American Recovery & Reinvestment Act of 2009. See Claim8000.com for more details and FAQ's about the tax credit.

http://leafgardenpress.com/ 8000 Tax Credit - First Time Buyers

... for 6327 borrowers with $ 77.6 million in federal tax debt who benefited from the 2009 American Recovery and Reinvestment Act. Of these borrowers, 3815 individuals claimed and received $ 27.4 million of First-Time Homebuyer Credits from the Recovery Act. Tax Cheats Received Federal Mortgage Insurance and Homebuyer Tax Credits

First-time home buyers do not necessarily have to go through a real estate agent to receive the tax credit. Homes that are "for sale by owner" also are eligible. First-time home buyers who purchase a home in 2009 can claim the credit on a 2008 tax return, do April 15, 2009, or a 2009 tax return, do April 15, 2010. The credit may not be claimed before the closing date. First-time buyers can claim a credit worth $ 8,000. The bonus is that the credit is refundable, which means that filers will see a refund of the full $ 8,000, even if their total tax bill was less than that amount.

First-time home buyers purchasing any kind of home new or resale is eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009.

Taxpayers who qualify for the first-time home buyer credit and purchase a home this year (before Dec.

This special feature can put money in first time buyers' pockets right now rather than waiting another year to claim the tax credit. Taxpayers are urged to consult a professional to determine the tax consequences of a sale. Taxpayers buying a home who wishes to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

Taxpayers who file their taxes after receiving an extension can still file electronically, the IRS says. By e-filing and arranging for direct deposit, you can get your refund in as few as 10 days. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

IRS Publication 919 contains rules and guidelines for income tax withholding.

Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

File for the tax credit when preparing your 2009 federal tax documents by using Form 5405. You may also be eligible to claim your 2009 purchase on your 2008 tax filing. Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Partial credits of less than $ 8,000 are available for some taxpayers whose MAGI exceed the phase-out limits.

FHA put up a mortgagee letter stating how the program was intended to work, and then took it down the same day. The details that were supposed to come out within the week didn't come out. FHA has a list of approved lenders that can use the bridge loan type product.

Families can only access this credit after filing their tax returns with the IRS. The announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to 'monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Families will now be able to apply their anticipated tax credit toward their home purchase right away.

Extend the time frame that the tax credit is, in effect, to somewhere near the end of 2010 depending on when the bill is passed (if it gets passed). The bill suggests that it be, in effect, for 1 year from its approval into law.

Owning a home can take a lot of time and expense but for many, its drawbacks are far more complicated than sticks, leaves, and paint. Owning a home can result in many tax advantages such as deducting mortgage interest and real estate taxes if you itemize deductions. The government's recent attempts to stimulate our economy have included additional tax advantages for some first-time home buyers.

Ownership of non-primary residences such as rental properties or vacation homes does not disqualify a first-time home buyer from the $ 7500 tax credit. All you have to do is claim the tax credit on your federal income tax return.

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Question by Shelly: What truly qualifies as a "first time home buyer purchase" for the 2009 00 Tax Credit? Here's the scenario & I could REALLY use advice from someone who knows what they're talking about! : I own a home and live with my boyfriend. If we refinance the mortgage together and I put his name on the deed of the house with mine, is that considered a purchase on his part? It would be the first home he has ever "owned." What else would it take? I know that with this 2009 credit, two unmarried people can own the house together and as long as one is a 1st time buyer, she or he qualifies for the $ 8000. Any advice? Thank you!! **Thank you for the answers so far. In response to the first answer, about the purpose of the credit..... I agree. But I would also interject that a secondary reason behind it might be to encourage people who have never participated in real estate to take part and help to establish more "legitimate" mortgage situations. Right now I have one of those ballooning, sub-prime loan situations and have for 3+ years. I cannot qualify for a refinance on my own, but he would enable me to if he went on the loan with me. So now my question is -- is there any way to actually have him "purchase" this home from me with me remaining a part of it somehow? I am not attempting to beat the system or anything like that --- just want to make sure we are not missing out on something we might qualify for. Thanks again!!! Best answer for What truly qualifies as a "first time home buyer purchase" for the 2009 00 Tax Credit?:

Answer by v b
The point of the FTHB credit is to sell houses and get rid of excess inventory. Refinancing your house does not do that, so NO, he does not qualify.

Answer by Wayne Z
No, that is not purchase and does not qualify for the credit.

Answer by ninasgramma
A refi would not count as a sale. You would have to sell the home (or part of the home) to him for him to qualify as a sale.

Answer by Colanth
Refinancing is not buying, so it doesn't qualify at all.

Answer by SmartA$ $
Nope, it doesn't count for several reasons: 1. Mortgages have nothing to do with it, its about ownership, not about who owes the debt (if any) against the house 2. If you are still the partial owner, you are not a first time buyer and therefore no joint owners can qualify as first time buyers, even if its their first time owning house. 3. This is not an arms length transaction. The "arms length transaction" clause prevents people from doing things such as transferring titles between parents & kids, siblings, boyfriends & girlfriends, etc just to collect the credit. Essentially, this was specifically designed to prevent you from doing this. As for your comment about the intent of the credit, sorry, but I disagree. The intent is to help the real estate market, period. Refinancing, adding a person's name to a title, or selling your house to buy another one don't help the market, therefore none of those actions qualify for a credit. The market is only helped when NEW buyers come into the market and buy a house. Congress isn't interested in helping you get into the real estate world. On a personal note, don't combine your finances with a boyfriend. Get married first. From both a practical and legal perspective everything works better. Even if you never break up, being married creates a sense of oneness and helps reduce fights about who should pay for what, since everything you own is "ours" instead of "his" and "hers"

Answer by Bash Limpbutt's Oozing Cyst©
Want the credit? Fine. Sell the current place and buy another one jointly with the BF. You won't qualify for the credit, but he will as long as you are not married and he meets the income limits. When joint buyers are not married only one needs to qualify and that person can claim the entire credit. This is the ONLY way that you'll qualify for the credit. Doing a re-fi and gifting him 1/2 of the current equity won't cut it. Acquisitions by gift are explicitly excluded from the credit.

Answer by Judy
No, a refi doesn't qualify so he would not be eligible even if his name wasn't on the deed before, and is after the refi. But with a mortgage like you have, would be a real good idea to refi if you can.

[first time buyer advice tax credit 2009]