$7500.00 duty credit for buying a home..is this for everyone no situation what type of loan you get?
I believe is only for first time home buyers. I may be wrong.
And,,,,, haven't you learned your lesson! Stay away from ARMS. No more 2 - 5 year fixed, no more option, no more interest only, no more 5-5-5 fixed ARMS.
Ask for a 15 or 30 year fixed. I did, and I'm one of the few around here still in my house. Interest rates will NOT dance down from here. Stop playing with loans.
/
If you paid lolly for your house, you could still be eligible.
You really need to see if you qualify before you take your hopes up for an "interest free loan"--even if you get it, you have to discharge it back.
The word "credit" is what is confusing people.
From irs.gov
Tax Credit to Aid First-Time Homebuyers; Must Be Repaid Over 15 Years
IR-2008-106, Sept. 16, 2008
WASHINGTON — First-time homebuyers should switch on planning now to take help of a new tax credit included surrounded by the recently enacted Housing and Economic Recovery Act of 2008.
Available for a predetermined time only, the credit:
Applies to home purchases after April 8, 2008, and before July 1, 2009.
Reduces a taxpayer’s excise bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning that the credit will be salaried out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.
However, the credit operate much like an interest-free loan, because it must be repaid over a 15-year period. So, for example, an eligible taxpayer who buys a home today and properly claims the maximum available credit of $7,500 on his or her 2008 federal income excise return must begin repaying the credit by including one-fifteenth of this amount, or $500, as an additional tariff on his or her 2010 return.
Eligible taxpayers will claim the credit on new IRS Form 5405. This form, along with further instructions on claiming the first-time homebuyer credit, will be included within 2008 tax forms and instructions and be available later this year on IRS.gov, the IRS Web site.
If you bought a home just now, or are considering buying one, the following questions and answers may help you determine whether you qualify for the credit.
Q. Which home purchases qualify for the first-time homebuyer credit?
A. Only the purchase of a foremost home located in the United States qualifies and single for a limited time. Vacation homes and rental property are not eligible. You must buy the home after April 8, 2008, and before July 1, 2009. For a home that you construct, the purchase date is the first date you occupy the home.
Taxpayers who owned a principal home at any time during the three years prior to the date of purchase are not eligible for the credit. This means that first-time homebuyers and those who have not owned a home within the three years prior to a purchase can qualify for the credit.
If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tariff return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 (or amended 2008 return) or 2009 return.
Q. How much is the credit?
A. The credit is 10 percent of the purchase price of the home, next to a maximum available credit of $7,500 for either a single taxpayer or a married couple filing in concert. The limit is $3,750 for a married person file a separate return. In most cases, the full credit will be available for homes costing $75,000 or more. Whatever the size of the credit a taxpayer receives, the credit must be repaid over a 15-year period.
Q. Are in attendance income limits?
A. Yes. The credit is reduced or eliminated for higher-income taxpayers.
The credit is phased out base on your modified adjusted gross income (MAGI). MAGI is your adjusted gross income plus a range of amounts excluded from income—for example, certain foreign income. For a married couple filing a combined return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000.
This process the full credit is available for married couples filing a joint return whose MAGI is $150,000 or smaller amount and for other taxpayers whose MAGI is $75,000 or less.
Q. Who cannot take the credit?
A. If any of the following describe you, you cannot nick the credit, even if you buy a main home:
Your income exceeds the phase-out range. This mode joint filers with MAGI of $170,000 and above and other taxpayers beside MAGI of $95,000 and above.
You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You stop using your home as your main home.
You sell your home earlier the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year.
Your home financing comes from tax-exempt mortgage revenue bonds.
You owned another crucial home at any time during the three years prior to the date of purchase. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest contained by, another main home at any time from July 2, 2005, through July 1, 2008.
It's not really a tax credit, it's an interest free loan.
Tax Credit to Aid First-Time Homebuyers; Must Be Repaid Over 15 Years
http://www.irs.gov/newsroom/article/0,,i…
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And,,,,, haven't you learned your lesson! Stay away from ARMS. No more 2 - 5 year fixed, no more option, no more interest only, no more 5-5-5 fixed ARMS.
Ask for a 15 or 30 year fixed. I did, and I'm one of the few around here still in my house. Interest rates will NOT dance down from here. Stop playing with loans.
/
If you paid lolly for your house, you could still be eligible.
You really need to see if you qualify before you take your hopes up for an "interest free loan"--even if you get it, you have to discharge it back.
The word "credit" is what is confusing people.
From irs.gov
Tax Credit to Aid First-Time Homebuyers; Must Be Repaid Over 15 Years
IR-2008-106, Sept. 16, 2008
WASHINGTON — First-time homebuyers should switch on planning now to take help of a new tax credit included surrounded by the recently enacted Housing and Economic Recovery Act of 2008.
Available for a predetermined time only, the credit:
Applies to home purchases after April 8, 2008, and before July 1, 2009.
Reduces a taxpayer’s excise bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning that the credit will be salaried out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.
However, the credit operate much like an interest-free loan, because it must be repaid over a 15-year period. So, for example, an eligible taxpayer who buys a home today and properly claims the maximum available credit of $7,500 on his or her 2008 federal income excise return must begin repaying the credit by including one-fifteenth of this amount, or $500, as an additional tariff on his or her 2010 return.
Eligible taxpayers will claim the credit on new IRS Form 5405. This form, along with further instructions on claiming the first-time homebuyer credit, will be included within 2008 tax forms and instructions and be available later this year on IRS.gov, the IRS Web site.
If you bought a home just now, or are considering buying one, the following questions and answers may help you determine whether you qualify for the credit.
Q. Which home purchases qualify for the first-time homebuyer credit?
A. Only the purchase of a foremost home located in the United States qualifies and single for a limited time. Vacation homes and rental property are not eligible. You must buy the home after April 8, 2008, and before July 1, 2009. For a home that you construct, the purchase date is the first date you occupy the home.
Taxpayers who owned a principal home at any time during the three years prior to the date of purchase are not eligible for the credit. This means that first-time homebuyers and those who have not owned a home within the three years prior to a purchase can qualify for the credit.
If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tariff return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 (or amended 2008 return) or 2009 return.
Q. How much is the credit?
A. The credit is 10 percent of the purchase price of the home, next to a maximum available credit of $7,500 for either a single taxpayer or a married couple filing in concert. The limit is $3,750 for a married person file a separate return. In most cases, the full credit will be available for homes costing $75,000 or more. Whatever the size of the credit a taxpayer receives, the credit must be repaid over a 15-year period.
Q. Are in attendance income limits?
A. Yes. The credit is reduced or eliminated for higher-income taxpayers.
The credit is phased out base on your modified adjusted gross income (MAGI). MAGI is your adjusted gross income plus a range of amounts excluded from income—for example, certain foreign income. For a married couple filing a combined return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000.
This process the full credit is available for married couples filing a joint return whose MAGI is $150,000 or smaller amount and for other taxpayers whose MAGI is $75,000 or less.
Q. Who cannot take the credit?
A. If any of the following describe you, you cannot nick the credit, even if you buy a main home:
Your income exceeds the phase-out range. This mode joint filers with MAGI of $170,000 and above and other taxpayers beside MAGI of $95,000 and above.
You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You stop using your home as your main home.
You sell your home earlier the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year.
Your home financing comes from tax-exempt mortgage revenue bonds.
You owned another crucial home at any time during the three years prior to the date of purchase. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest contained by, another main home at any time from July 2, 2005, through July 1, 2008.
It's not really a tax credit, it's an interest free loan.
Tax Credit to Aid First-Time Homebuyers; Must Be Repaid Over 15 Years
http://www.irs.gov/newsroom/article/0,,i…
Related Questions: