Answers about the $8000 First Time Home Buyer Tax Credit
The new First Time Home Buyer tax credit has generated a lot of interest among home buyers and real estate professionals. In typical IRS fashion, the guidelines and answers to commonly asked questions leaves a lot to be desired. Quite often the regulations aren't precisely clear about who will qualify and what the exceptions are. Many brand new and potential homeowners don't know where to turn for answers. Also, many are confused about the new credit versus the prior deduction from 2008.
After some exhaustive research and a few phone calls, here are some answers to some of the most commonly asked questions:
Q: Can I claim both the 2008 credit since its basically a loan and the 2009 credit?
A: Yes per the IRS. Both credits require that you had purchased your home in a specific time period in order to be eligible. In order to do so, you would have had to have bought your home in January of 2009.
Q: How long does it take to receive tax credit refund check?
A: According to the IRS, it takes anywhere from 8 to 10 weeks to receive your refund check. However, that should be considered just a general guideline. I've talked to people that have been waiting longer and a few that actually received their check in just under 6 weeks.
Q: Can I help my child who has never owned a home, buy a house and have them claim the tax credit?
A: This is probably one of the most commonly asked questions. If you are not eligbile but help your child buy a house by cosigning on the loan, your child may claim the full amount if that home will be their primary residence and they meet the rest of the requirements. They will also need to reside in the home for three years or they will have to repay the credit.
Q: I bought my house in 2008 but it needed some repairs before I was able to live in it. I actually moved into the home in January of 2009. Can I claim the 2009 tax credit instead?
A: Sadly the answer to that question per the IRS is no. The tax credit qualifications are based on when you purchased the home, not when you started to occupy it (unless it is being built). So if a residence was bought at the end of 2008 but you didn't move in until next year, you would still only be eligible for the $7,500 tax credit of 2008.
Bottom line, if you are unsure whether you qualify for the tax credit, seek an accredited tax professional to prepare your return. IRS form 5405 does give some specific examples of what you need to do to be able to claim the credit. Thanks for stopping by.
About the Author:
Charles Richey is the webmaster for a comprehensive Las Vegas real estate site. The site also offers the latest Las Vegas real estate market news and a free MLS search.
After some exhaustive research and a few phone calls, here are some answers to some of the most commonly asked questions:
Q: Can I claim both the 2008 credit since its basically a loan and the 2009 credit?
A: Yes per the IRS. Both credits require that you had purchased your home in a specific time period in order to be eligible. In order to do so, you would have had to have bought your home in January of 2009.
Q: How long does it take to receive tax credit refund check?
A: According to the IRS, it takes anywhere from 8 to 10 weeks to receive your refund check. However, that should be considered just a general guideline. I've talked to people that have been waiting longer and a few that actually received their check in just under 6 weeks.
Q: Can I help my child who has never owned a home, buy a house and have them claim the tax credit?
A: This is probably one of the most commonly asked questions. If you are not eligbile but help your child buy a house by cosigning on the loan, your child may claim the full amount if that home will be their primary residence and they meet the rest of the requirements. They will also need to reside in the home for three years or they will have to repay the credit.
Q: I bought my house in 2008 but it needed some repairs before I was able to live in it. I actually moved into the home in January of 2009. Can I claim the 2009 tax credit instead?
A: Sadly the answer to that question per the IRS is no. The tax credit qualifications are based on when you purchased the home, not when you started to occupy it (unless it is being built). So if a residence was bought at the end of 2008 but you didn't move in until next year, you would still only be eligible for the $7,500 tax credit of 2008.
Bottom line, if you are unsure whether you qualify for the tax credit, seek an accredited tax professional to prepare your return. IRS form 5405 does give some specific examples of what you need to do to be able to claim the credit. Thanks for stopping by.
About the Author:
Charles Richey is the webmaster for a comprehensive Las Vegas real estate site. The site also offers the latest Las Vegas real estate market news and a free MLS search.
posted by Jade456 @ 7:16 PM
0 Comments
0 Comments:
Post a Comment
<< Home