Home Buying in Maywood>Question Details

Sunny, Home Buyer in Maywood, CA

Do we qualify for the 8,000 tax credit?

Asked by Sunny, Maywood, CA Tue Oct 13, 2009

My husband and I purchase a house with a duplex in the back,we live on one property and rent the others ones.We are first time buyers.Do we qualify for the 8000 tax credit?

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Sunny

From the IRS site....Q. I purchased a duplex home with two separate dwelling units. I will live in one dwelling and will rent out the other dwelling unit and report the rental income on Schedule E. May I qualify for the first-time homebuyer credit, and what amount do I use for the purchase price to determine the amount of the credit?

A. Yes, you may qualify for the credit for the dwelling unit that you use as your principal residence. To determine the amount of your credit, you must allocate the purchase price of the duplex between the two separate dwelling units. Your credit is 10% of the portion of the purchase price of the duplex allocated to your dwelling unit that you use as your principal residence, up to a maximum credit of $8,000. You may not use the entire purchase price of the duplex to determine the amount of your credit.

http://www.irs.gov/newsroom/article/0,,id=206291,00.html

Good luck, Dunes
1 vote Thank Flag Link Tue Oct 13, 2009
Hi Sunny,

You can find some useful info on the tax credit at the following website: http://www.federalhousingtaxcredit.com/

As other agents here have mentioned, you should always check with your tax adviser to be sure. Hope this info helps..

John Barry
DRE #01856079
Coldwell Banker Residential Brokerage
Cell: 323-810-7976
Email: john.barry@coldwellbanker.com
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0 votes Thank Flag Link Sat Feb 27, 2010
Always confer with CPA or mortgage broker determine status if you can qualify

Keep in mind each year you own a home you receive annual tax benefits

While you have conference with CPA ask if you receive any other tax deductions purchasing a home example closing costs and etc.

Congrat's on your new residence.

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911

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0 votes Thank Flag Link Wed Oct 14, 2009
Thank-you Sunny for the Best Answer, it is very much appreciated.....

Thank-you also Debbie
0 votes Thank Flag Link Wed Oct 14, 2009
Dunes...............good work! Great response! You get a thumbs up!!

Sunny......don't forget there are income limits, too............as a couple your modified adjusted income can be $150,000 for the maximum credit...it phases out at $170,000. You have to live in this home, as your principal residence, for 3 years or (with some exceptions) you will have to pay it back.

Good luck!
Debbie Rose
Prudential NJ Properties
0 votes Thank Flag Link Tue Oct 13, 2009
Sunny,

The answers to most commonly asked questions about the 2009 tax incentive program can be found on the following website:

http://www.federalhousingtaxcredit.com/2009/faq.php

Good luck
0 votes Thank Flag Link Tue Oct 13, 2009
Here is some information from the IRS on first time home buyers credit.

First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:

*
Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
*
Applies only to homes used as a taxpayer's principal residence.
*
Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
*
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405.
0 votes Thank Flag Link Tue Oct 13, 2009
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