$8000.00 Tax Deduction for First Time Home Buyers
I was a little disappointed to hear the $15,000.00 got axed in the Stimulus Package, but at least the $8000.00 does not have to be paid back.
If you are a first time home buyer, now would be a good time to consider buying your first home.
- Prices have never been lower in Ann Arbor and throughout Washtenaw County
- The interest rates are low hanging around 5%
- You get to deduct the 8000.00 to purchase your new home.
Here is a quick guide to how you can apply the tax credit and how it compares to the $7500.00 credit in 2008.
You can click here to search the Ann Arbor Area MLS.
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My wife owned a condo. She sold it 2 years ago, however, the prior year she began using it as a rental property. Since this was not primary residence, does this qualify as first time home buyer?
I purchased what I thought was going to be a vacation (second home) in Az in June but was told by my doctor to move to Az due to cronic sinus infection. I rented my home in GA and moved to AZ. Do I qualify for the tax break?
i was wondering where do you get the form at?
Great site. I was wondering, is there a way to get the $8000.00 up front to use for repairs?
Thanks
If you can find a lender approved to do it. I have heard you can, but can’t find a local lender to do so.
Go to the IRS web site. They have all the forms there.
It is for First Time Homebuyers or those that have not owned a home for 3 years.
i was just wondering if we get cash for first time home owners or credit?
It is a credit, Steve.
Does a Real Estate Contract qualify as a “Mortgage” and the tax credit?
No a contract does not, you must have the deed of the home transferred to you.
I purchased a condo 2 years ago and just got married this past year – can I transfer the house to my wife in order to get the credit? If so, would I have to have solely her name on the deed?
No if you are married it applies to if one person owned the home the last 3 years.
If a first time buyer who qualifies for the tax credit does not owe money for his 2009 taxes and received a refund. What happens to the $8,000.00 tax credit?
They send you a check back in the mail. Yea…
I am wondering about the 8,000.00 tax credit for my fiance’s son. I am co-signing on a mortgage loan because
he is self employed. I am getting mixed responses about the tax credit. This is his home and he will occupy it. I
have a home of my own. Any advice will help.
Susie, the new bill allows up to 6500.00 tax credit for move up buyers. So you can now claim it.
Howard, I am not an attorney and would not feel comfortable giving legal advice. My question is who is going to be on the deed, both of you or just your fiance’s son? I would think if he is responsible for the home, occupying it and paying the taxes, he would be allowed to deduct it. The IRS is very helpful on specific questions like this.
I purchased a home in late September but did not qualify for the $8,000 due to the income limits. As of Nov. 6th the income limits have changed and I now qualify. I know that the new limits are for Nov. 6th and beyond, but what I am looking for is a loophole. Can I refinance and add my fiancé to the mortgage and title so he could get the credit? (He meets all qualifications)
Hi Missy, Im a 100% disabled veteren recieving compensation and social security. I close on my first home next week but no one can give me a definate answer as to whether I will recieve this credit or not. If so, how will it benefit me? Will I recieve 8k as a check or am I just out of luck since I dont have earned income?
If you have not owned a home in 3 years then yes to the 8000.00. If you have then you can claim the up to 6500.00 credit as a buyer. How you get your income should not matter, as this is a tax credit. If you claim it on your 09 taxes and don’t owe money to the IRS, you will get it as a check. If you do owe, then you can deduct it from what you owe. http://www.federalhousingtaxcredit.com/faq1.php
Hi Missy. I am in the process of purchasing a home, and should close by the end of the year (2009). I qualify for the first time home buyer tax credit of $8000.00. However, my question is this: I have heard a lot of talk about the long delays in receiving checks for the credit. I am debating whether to file my 2009 tax return without claiming the credit so I can get my “regular” refund in a timely manner, and then filing a 1040X with the 5405 and supporting docs for the housing credit. I normally get a rather large refund, and I don’t want to delay receipt of that money too. Do you think this will be an issue, or that I would be better off filing all at one time (are 1st filings given more priority than amended returns)? Would filing all at once actually speed up my housing refund? I have been given differing advice from the tax professionals I have spoken with and am trying to decide how to proceed come February 2010….Thanks in advance for you help!
Amy, if you are waiting until you file you 2009 taxes, it will just be a credit on your regular tax return. So it should not be delayed, just include your HUD statement that your receive at closing in with your return. However, you can also just file the 5405 later. I know they are taking a lot of time in sending checks but I assume that is people ammending their returns
I have my house title and mortgage in my name. If I transfer the title of the house to my fiance, will he be able to take advantage of the new home buyer credit since he’s never owned any property ever?
Is there any way around not getting the tax credit when purchasing from a family member? I would like to buy my grandmothers home that has just gone on the market. How is this fair that someone else can buy this house and get the credit outside the family and not me? We have been approved for a loan, but now we don’t know if we can afford the house without the 8,000 off in taxes. Can we get around this or do we just have to buy it without the credit?
Hello. I recently sold my home on land contract. They are moving out and Im moving back in. Would I qualify for the tax credit?
I’m confused…..you sold…but are moving back in?
Can you clarify?
If you bought you can claim the credit. If you sold and bought again a new home you can claim the 6500 credit if you meet all the guidelines. Did you live there 3 years as your primary residence?
yes I was there for 3 yrs. I sold on land contract. Now you can people that buy on land contract can claim the credit. So, they are moving and I am getting it back.
Banessa, no you can not claim it nor can they. They did not go forward with the land contract, the title never passed to them.
They are moving and you are moving back in, so you are only recovering from a defaulted land contract your own home.
When my husband and I began looking for a home, we decedied to not use a real estate agagent, however we did ask alot of question to a variety of agents and in our process we did tell them that we would be purchasing our home from my brother in law, and not one mentioned that we would not qualify for the tax credit. While working with a mortgague lender at a bank for 2 1/2 months, not a single person mentioned not qualify due to purchasing from a family member who has not lived in the home for over 4 years, We paid full market value of the home, nothing funny about it. Is there any way of appealing this? It’s misleading the qualifications. Please advise .
Missy-
Great site! I was recently married last May. My wife has owned her home for 4 years. I have never owned a home. If we sell our current home…and purchase a new house in just my name before the deadline, would I qualify for a first time home buyer credit. Her name would not be on the mortgage, just mine.
Thanks!
Hi Missy, This is a bit complicated. My ex-wife and I are divorced for almost 2 years now. We moved from ohio to mich april 07 (still owned a house which was on the market but NOT our primary residence: So I think I am good on the 3 years). We got back together and in the time we were split she bought a house on land Contract from her parents (which makes her uneligible due to family member).
Question is: If I buy the house from her parents or her on land contract or get added to the current contrct will I be eligible for the $8000.00? We are NOT remarried at this time.
Thank you
Also just to clarify and ask:
I owned a house in Ohio until it was sold on a short sale in Dec 07. But my primary residence was in Mich was established in April 07 where I was renting a home and working. My understanding is the home had to be a primary residence which it was not. Is this correct?
Ugh complicated.
I am not sure because they are to be arms length. I will email the ruling and you can take it from there by asking an attorney. I know you are not married but you are in a relationship so that would not be considered arms length in the spirit of the law. But, may be legal.
I would not want to take the liberty to advise you on that one. But, adding you to the deed, definitely would not work. I will post on my community blog and see what kind of answers we get from others.
We bought our mobile home brand new in 1999. We were finally able to to finance land in August of 2009 and get our mobile home moved to it. This is our permanent residence. Can we claim the land loan?
Jennifer, I am not sure but I think so. Call the IRS and find out or an Accountant in your area. Did you not finance the mobile home in with the land?
No, we financed the mobile home by itself at the time. Nobody let us know about a home and land option and we were just starting off, so didn’t know any better. When we did, it was too late. We’ve finally got our own land and moved everything to it. I just didn’t know if just land would qualify for the tax credit.
Here are the guidelines.
http://www.federalhousingtaxcredit.com/faq1.php
I bought a house in 2006 and paid cash, my wife was on the deed. We seperated in August of 2008. She has since purchased a home. Being she was on the deed of the house that I bought is she still elligible for the first home purchase deduction? This is the first house she has purchased and she has been removed from my deed.
Don’t think so as you were married and by being on the deed she was owner. But, she should qualify for the 6500.00 for move up buyers based on her income.
my wife and i built a house on land of my fathers and instead of waiting on a deed we ended up just purchasing the land and home we built from him to ease some paperwork. we paid fair market value for the house through a mortgage company. Is myself or my wife eligible for THe Tax credit being that she is not a blood relative? Thanks
Reed, I don’t think so the rule is “arms length” transaction. You are married so you are treated as a married couple.
However, feel free to contact the IRS as they are quite knowledgeable.
Me and my wife moved into a mobile home in august of 2006. My mother-n-law bought the home on a credit card. There was not a title for the home for that perticuler year model. The bill of sale had my wifes and mother-n-laws name on it. we paid my mother-n-law payments on it then she took her name off of the bill of sale and put just my wifes name. We are closing on a home in march will we get the tax credit
Was the mobile home on your own land or rented land in a mobile home community?
So if I do not owe any taxes,I will receive an $8000 check?
Yes it will be a credit on your taxes, and if you don’t owe anything then you will receive a check.
hi, just want to check how long to recieve the tax refund of 8,000.00 for the first time home buyer,because we both a house last october 2009 and we mail the form for the 8k like 2 weeks ago.
It will be a big help if you can let me know the answer.
Thanks
MAss. LM
Lecel, they are backed up in Washington. Some people are waiting 3 months.
If the downpayment was gifted to me from a family member to purchase a home do I have to give the mortgage lender information on who gifted the money?
Hi Missy,
My husband and I had closed on our house April 1, 2008 right before the tax credit. Is there anyway or anything we can do to get that credit. We have already file our 2009 tax. Thanks.
I am sorry you have to have closed within the Government Guidelines. Bummer.
Yes the lender is going to need to see a gift letter. That it does not have to be re-payed.