Comments on Saving to Inve$t: 2010 $8,000 First-Time Homebuyer Tax Credit Extens...

hi Andy, i am on social security and would otherw...

2010-03-14T13:40:17.127-04:00

hi Andy,

i am on social security and would otherwise qualify for ftb credit.

my question is: does this credit come in the form of a payment to me from uncle sam or do i need taxable income to offset to benefit? and if the latter is this credit transferrable, let's say to the seller so i ca get value for it?

kindest regards
david

just wanted to say thanks for you site, it is very...

2010-03-12T16:27:43.799-05:00

just wanted to say thanks for you site, it is very helpful in digesting what the tax credit is all about.

My fiance and I are in contract to purchase a new ...

2010-03-04T19:06:48.363-05:00

My fiance and I are in contract to purchase a new construction condo...that may not close before June 30th.

Is there any talks about extending the current 2010 extension?

Hi Andy, My husband and I purchased our first ho...

2010-02-10T12:07:07.829-05:00

Hi Andy,

My husband and I purchased our first home in June 2006. We were suggested to question the homeowner tax credit of $6500. Would we qualify for the credit? We also refinanced our home for an even better interest rate in May 2009. Does this refinance help us to qualify? Thank you for your time and help with this matter. We are trying to make the most of our hard earned dollars and trying desperately to get ahead. Therefore, this tax credit could help out tremendously.

Hello Andy. Thanks for all the articles you publi...

2010-02-10T12:02:42.600-05:00

Hello Andy. Thanks for all the articles you publish. I have a question however. In the final revision of the First Time Homebuyers Tax Credit (2010)...is the tax credit no longer being offered in a phase-out fashion ($2000 each successive quarter)?

I apologize if I get lengthy in my questions but I...

2010-02-10T11:51:32.729-05:00

I apologize if I get lengthy in my questions but I need a specific answer if you don't mind.

1. I read your article and I am a little confused. I am in the process of purchasing a home. I understood from your article that as of President's Day, the tax credit may be extended to $15,000 and not have to be paid back. Is this correct?

2. I am currently in the process of purchasing a mobile home (January 2010) which will be financed. Can I use the $8,000 toward a down payment? If so, how does this work?

3. Would I be better served to put off my purchase until after President's Day?

4. Would I be better served to use the $8,000 on my income taxes rather than a down payment?

Your help will be greatly appreciated and I look forward to hearing from you soon.

I am trying to find out some information regarding...

2010-02-10T11:50:43.721-05:00

I am trying to find out some information regarding a new air conditioner I bought in June 2009.
My salesman/installer assured me I’d receive a check for $1500 from the IRS when I completed my taxes.
My accountant is now telling me I can only reduce any taxes owed by $1500. I don’t make enough money to owe, I am due a refund. I was told by the a/c installer I would get my refund plus $1500.
Who is right?
If the accountant is right, can I put off claiming the a/c until 2010 and hope I will owe and can then get the credit?

Will you qualify for Obama tax credit of $6,500.00...

2010-02-10T11:48:33.396-05:00

Will you qualify for Obama tax credit of $6,500.00, if you buy a home with Owner Financing?

Hi Andy, I seen your blog that you had about...

2010-02-10T11:48:02.204-05:00

Hi Andy,

I seen your blog that you had about the first time homebuyers credit. I had a question for you. My fiance and I purchased a home on May 31,2009. We obviously would of qualified because it was the first house either of us had ever purchased. On September 3, 2009 he was killed in a tragic car accident. Our house is up for sale right now because I can not afford it on my own. I was wondering if because of these circumstances I could still claim the $8,000 or do I completely lose on this because it was something that was out of my control? If you could get back with me that would be great!

Andy, hopefully you can understand our question. W...

2010-02-10T11:45:06.221-05:00

Andy, hopefully you can understand our question. We became under a binding contract for a new home back in August of 2009 but we aren’t expected to settle till the beginning of June 2010, when the Certificate of Occupancy will be signed and the building is ready to move in. Could you confirm, from your site that, if we do settle by the 6/30/2010 deadline, we still have the option of taking the $6,500 credit on our 2009 or 2010 tax returns.

Thanks,
Dave

I read the instructions for form 5405, previously ...

2010-02-10T11:42:25.846-05:00

I read the instructions for form 5405, previously called the IRS (over a month ago, but I'm calling again tomorrow - They didn't have the answer yet), researched your site as well as many others and I can say, I'm still not sure...So, here it is

This #2 rule listed below is taken right from the IRS Instruction 5405 Booklet

2. You (and your spouse if married) did not own any other home during the 3-year period ending on the date of purchase.

Is the "Date of Purchase" the Previous Purchase date or the New Purchase date?

We closed on a house on 5/11/07 and then, sold that same house on 10/15/08.

Is the 3 year rule to qualify as a new home buyer...

1. From the Previous purchase date or - 5/11/07 to 5/11/10

2. From the Previous sale date or - 10/15/08 to 10/15/11

3. From the New Sale Date counting backwards 3 years for new home (EXAMPLE: NEW HOME purchase date 5/11/10 goes to 5/11/07 doesn't qualify me because I didn't sell my previous home until 10/15/08 or is it from the previous purchase date?

The instructions booklet from the IRS it's misleading.

Also, with these closed & sold dates that I have given you...
Do we qualify for the repeat home buyer of $6500? It's kind of interesting if not because another IRS.gov website also included "Repeat" buyer not as necessarily pertaining to "Move-up".

Lastly, I noticed a while ago and you have it listed about deducting $2K for every quarter until 11/30. Is that something that I would qualify for or was that for a previous year?

Thank you for your reply,

I will highly appreciate your response,

Laura

Is this where I post a question? I couldn't find a...

2010-02-05T13:01:47.311-05:00

Is this where I post a question? I couldn't find another place. My question is: we owned a house for more than 5 years, had a short sale Jan. 2, 2009, and have been renting since. If we buy a house now (before the deadline), can we still get the $6,500 tax credit? Thanks so much. Deb

I think a number of the questions raised by the co...

2010-01-23T11:30:15.274-05:00

I think a number of the questions raised by the commenters would be provided by some of the new IRS information called 10 facts about the home buyer credit extension:

You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.

A dependent is not eligible to claim the credit.

The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.

If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.

For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.

A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.

The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.

People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.

The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.

No credit is available if the purchase price of the home exceeds $800,000.

My Brother and i recently purchased a home togethe...

2010-01-20T22:08:15.009-05:00

My Brother and i recently purchased a home together from our Familys farm that we were co-owners of but the farm ground was sold and with that money we purchased a house and 13 acres of pasture on the farm. We purchased from a family estate that we inherited 5 years ago. And i was wondering if we qualify for the 1st time homebuyers credit?

I would like help with a question regards to the 1...

2010-01-15T15:27:09.968-05:00

I would like help with a question regards to the 1st time home owner credit. Has it been extended is the first question? Also, with that, me and my husband are in the process of a rent to own/land contract and have been told we would qualify for this 1st time home owner credit with our situation providing proper documentation. Is this also a correct statement? We are not able to get a sound answer on anything. Please Help, Confused in Wisconsin

Me and my husband are currently in the process of ...

2010-01-15T15:23:22.212-05:00

Me and my husband are currently in the process of purchasing our 1st home. Am I understanding correctly that we would still qualify for the 1st time home owner credit. This is actually a rent to own situation, and were told that if proper paper work is established we would qualify under the regulations of the credit. Is this true or false. I feel like were int he dark and cant get a accurate answer. Please help with my concerns if possible. Thank You ~ Confused in Wisconsin.

Hello. My husband and I own a previous home for 10...

2010-01-14T21:22:55.847-05:00

Hello.
My husband and I own a previous home for 10 years .We are in contract with a bulder since 11/09.we are suppose to close on the new home in july or august 2010. would we qualify for the tax credit $6,500?

I'm a 45 year old divorced father of four. In Jan...

2010-01-07T22:50:49.367-05:00

I'm a 45 year old divorced father of four. In January of 2006 I quit claimed all interest in the home my ex wife and I owned and lived in. Three and one half years later, I was debating whether to renew my annual lease on an affordable apartment in a convenient location. My landlord, a realtor, told me I'd be crazy NOT to take advantage of the new first time home buyer credit being offered.

I looked into it. I clearly qualified as a first time home buyer. I knew of a nice little house for sale in a neighborhood I liked. I didn't have much money for a down payment though. I heard of a local bank offering to lend downpayment money to borrowers qualifying for the first time home buyer credit. Everything was lining up! I got pre-qualified, made an offer, got it accepted, and scheduled a closing.

In June of 2009 I became a home owner. I paid $65,000 for the house. I borrowed the 10% downpayment in a balloon loan- to be paid when the tax credit came in 6 to 8 weeks. This may seem like the kind of borrowing that got the country into trouble, but the house appraised well above the purchase price, and with the $6500 credit, I'd be in a great equity position in no time!

Two months later I'd heard nothing from the IRS. I went online to check the status. It showed nothing. I called a toll-free number and was put on hold for twenty minutes! You never get those minutes of your life back!

Three months later I called again. I learned that the IRS was overwhelmed by applications for this first time home buyer credit. The Economic Stimulus was doing some stimulating. Things were backed up. The balloon loan came due. I extended it for another six weeks, (at 13%)

Four months later I got a letter from the IRS. My credit was denied. Their records showed that I'd owned a home within the three year period preceding the purchase of the qualifying home. Their records were wrong, but that didn't matter much. The letter was final. My only option, it stated, was to appeal in federal tax court!

What???? Once I settled down, I began researching. I found phone numbers that got me directly to IRS agents. (See the page: IRS contacts) I made calls and surprised a few bureaucrats. I also filled out a form to procure an IRS tax advocate. If you are having trouble getting your credit, click here to FILL OUT THIS FORM: !!

I got them to reopen my case. I called my advocate every week. I felt like, maybe she was helping- maybe she was pacifying me to get me off the phone.

Six months later, I closed out the year with a report from the IRS. The advocate had told me nothing of the report landing in my mail box- the report informing me that A. My First Time Home Buyer Credit was denied. B. A review of my 2008 tax filing revealed an underpayment of $1600.00!

Wow! Both items were in error. Try telling the IRS that!

I've since refinanced the balloon loan into a second mortgage. Now I'm paying two loans and property taxes, and utilities, AND maintenance! Thanks Obama. You dangled a carrot. I jumped from my affordable apartment. The carrot got yanked away and here I am. The irony of a first time home buyer home going into foreclosure is rich and tragic.

Have I quit fighting? No Way!

1. I contacted my U.S. Congressional representative. I encourage anyone having trouble of this sort to do the same. After signing a release of information, the office of my congressman will be advocating for me. A file stamped: CONGRESSIONAL INTEREST might just float to the top of the pile.

2. I submitted paper copies of all documentation directly to the agent who signed the report, along with a letter summarizing my situation and itemizing the documents included.

3. I submitted paper copies of all documentation directly to the taxpayer advocate assigned to my case.

4. I started this website to arm other taxpayers and recruit their expertise.

Andy, My question is on the $8000 tax credits for...

2009-12-16T22:41:30.737-05:00

Andy,

My question is on the $8000 tax credits for first-time home buyers and $6500 credit for repeat buyers.

I was married in 2003 and purchased a home with my spouse in 2004. We lived there for approximately 5 years.

I was divorced in March 2009, purchased a new home on my own in April 2009. Do I qualify for the new-home buyer tax credit, since this is a first-time buy for me?

Thanks,

K.H.

Can somebody answer my question please: is there i...

2009-12-16T14:16:38.996-05:00

Can somebody answer my question please: is there is anyway for me to benefit from this?
I have bought a property and close on Oct 1. My husband however owns a property of his own where we used to live (he moved in with me we are downsizing and trying to rent out/sale his old place although it would be hard to cover his mortgage with the rental income.) Now we live in my house. It seems that I'm not even qualified for the $6500 credit since I bought prior to November 6th. Can i benefit from this law at all? Can I file separately and benefit I make much less than $75,000. I wish I could get this credit, but maybe we looked at as a "wealthy " couple with 2 properties, but the truth is my husband has over 30K in credit card debt which he doesn't seem to be able to catch up and get to principal in a past 4 years especially given the fact that Bank of America raised his APR to 29.99% ( this 9K of interest a year!!!)and after many calls they are not agreeing to lower this rate to anything reasonable!!! We always worked very hard, paid taxes, paid school education, never were able to benefit from any laws that support people just a bit below.(as many many others who represent middle class). However now we are going down thanks to the banks who were able to get all our tax money for bail out and are not even willing to lower the credit card rate to any reasonable percentage from whooping 29.99%. This credit was our hope....that just slipped off our hands.

My wife and I had our home forclosed on and are no...

2009-12-11T22:27:19.678-05:00

My wife and I had our home forclosed on and are now filing bankruptcy. We actually go to bankruptcy court on December 10th. We are now renting a home but found out today that the landlord died and the house is being put up on the market for sale. We are going to try to find a home that we can buy through owner financing. My question is concerning the $8000.00 tax credit. Are we able to qualify for it since we do not own a home now and the one we had a mortgage on was forclosed on by the bank?

Andy ~ I am appalled that the new income limits a...

2009-12-11T22:25:42.049-05:00

Andy ~

I am appalled that the new income limits are not retroactive! That is simply unfair to people like me. I was stunned and saddened to learn that, even though I am a single, first-time home buyer, I was ineligible for the credit because my MAGI was over $95,000 (a fact which was poorly advertised). I was elated when my financial adviser informed me that the tax credit had been extended AND the income limits raised (again, all this with very little notice to the public). Now, after having to search for details on this extension, I learn that, because I closed on my new home on October 19, 2009, I am STILL ineligible for the expanded tax credit. How does this help me?! It doesn’t and it simply isn’t fair that, through no fault of my own, and simply because I bought my house three weeks before November 6, 2009, I get screwed (once again) by the Federal Government! More frustrating is that I had no opportunity whatsoever to weigh in on this short-sighted decision.

My question: is there any way I can appeal this? Or, can I simply file for the credit and let the IRS figure out that I’m ineligible? This is just ridiculous that people like me – a single, first-time home buyer earning between $95,000 and $125,000, gets screwed out of a tax credit I should have the same right to enjoy as other tax-paying citizens, simply because I bought my home 3 weeks before November 6, 2009.

Please let me know what, if any, recourse I have.

Hi Andy, This is very complicated. I purchased a ...

2009-12-06T23:00:04.898-05:00

Hi Andy, This is very complicated. I purchased a home in Feb 09. I'm married, but the mortgage and title are in my name only because my husband's credit was in bad shape. We were not eligible for the credit then, because he had owned a home with his ex-wife. She kept the home according to their divorce agreement, but his name remained on the title and one of the mortgages and she was supposed to re-mortgage without him within a certain amount of time. She did not do it, and the house nearly went into foreclosure. The person who cosigned the second mortgage with them took over the property in October via quit claim deed. Now, neither my husband or his ex-wife has any interest in the home. Is there any chance we might be eligible for the credit now with the change? Thanks!

Andy, We are existing buyers who recently purchas...

2009-12-03T21:54:19.605-05:00

Andy,

We are existing buyers who recently purchased a home in June, of this year. Our new home will become our primary residence. We did not move into our new home until November 27th. Recently, the first time home buyer tax credit was extended to existing buyers, is it at all possible that we could qualify? Do you have any suggestions on what we can do and what our options may be? We don't want to be excluded from this opportunity based on this technicality. Is there any other way?

i am planning on building a home in july 1010 will...

2009-11-21T23:16:08.171-05:00

i am planning on building a home in july 1010 will the tax credit apply to me?