Home Buying in 19114>Question Details

Steve, Other/Just Looking in 19114

tax credit?

Asked by Steve, 19114 Sun Feb 22, 2009

ive heard about a 8000 dollar tax credit for first time home buyers, how does this 8000 come to you my thoughts on buying a house are, borrow 10000 - 15000 from my annuityfor a down payment which i would have to pay back hopefully recieve a 7500 fha loan which ive heard co workers talking about and put that towards my down payment also, and ive just heard about the 8000 tax credit and was wondering if that comes to you in a lump some next tax return, if it did i would pay it back into my annuity how does this first time home buyers tax credit come

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Gwenn Tanvas’ answer
BEST ANSWER
Hi Steve: I just wrote a blog titled Top 21 Questions Answered on the $8,000 Tax Credit for 1st Time Home Buyers - It can viewed by following the link below -

http://activerain.com/blogsview/947213/Top-21-Questions-Answ…

This may provide some answeres for you. Great questions and I hope this has been a help. Make it a great day...
1 vote Thank Flag Link Sun Feb 22, 2009
The tax credit is just that, a credit for what is owed on your taxes which is up to $8000 when you file for your 2009 income taxes. You must not have owned in home in the three years prior to the closing of the home and there are some stipulations with it.

Here's the link to the comparison of the 2008 Tax credit "loan" and the 2009 tax credit. http://www.realtor.org/wps/wcm/connect/b32db1004d05f6338052c…

Hope that helps,

Terrence Charest, e-Pro®
REALTOR®
Century 21 Associates
905 Easton Road
Willow Grove, PA 19090
Cell (Preferred): 877.614.1494
Office: 215.659.5250
Fax: 215.659.5550
tcharest@HomesForFreedom.com
“Century 21 is the number one franchise site on the Internet”
1 vote Thank Flag Link Sun Feb 22, 2009
BREAKING NEWS ON THE TAX CREDIT HOMEFRONT - Read this blog! It's not just for 1st timers anymore.
0 votes Thank Flag Link Thu Nov 5, 2009
If you have already filed your 2008 taxes you can amend them for this credit. It is filed on a 1040X then mailed to the IRS. It will take about 6-8 weeks for the process. If for some reason you have something attached to your refund (back child support, back taxes, student loans) the IRS will use this money to pay off this debt first before they give you the remainder of the money (if there is any left)
0 votes Thank Flag Link Sun May 3, 2009
Hi Steve,

I wrote two great articles on the tax credit that has received a lot of media attention. Take a read at http://www.reneeporsia.com/renees-new-blog-.asp

If you have any other questions, feel free to contact me.

Renee Porsia
Associate Broker
RE/MAX ACTION REALTY
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
http://www.reneeporsia.com
0 votes Thank Flag Link Sat Mar 21, 2009
Hi Steve,

The only thing I haven't seen mentioned is that if you've already filed your 2008 tax return, you can file an amended tax return for 2008 rather than waiting for you 2009 taxes to be filed. Good luck.
0 votes Thank Flag Link Thu Mar 12, 2009
Great information on the tax credit. The $8000 tax credit will replace the $7500 tax credit you referred to in your question. First time homebuyers are eligible, there are income limitation ($75,000 single filers, $150,000 joint filers), it does not have to be paid back and you have to live in the property for at least 3 years or you'll have to pay it back. You will receive $8000 or 10% of purchase price, whichever is less, as a tax credit on your return. For instance if you pay a total of $7000 in taxes and your tax liability is $6000 you'll receive $8000 back instead of $1000.
0 votes Thank Flag Link Fri Feb 27, 2009
Hello, Steve,

You WILL get the money as a lump sum if you have already paid your taxes. For example, if your tax liability for 2008 was $6,000 and you paid $6000 in withholding, you will get a check for $8000. If your liability was $10,000 and you only paid in $6000, then you would only get a check for $4000.

If you wait to file your 2009 taxes and pay all of your appropriate withholding during the year, you will get the full check when you file in for 2009 in 2010.


Carol Murray Cei
ReMax Millennium
215-649-1720
carolcei@remax.net
0 votes Thank Flag Link Mon Feb 23, 2009
You have received good information from others. You need to have money for the down payment and can get seller's assist for FHA programs. To get the details of the Tax credit , the site I recommend is http://www.federaltaxcredit.com
You do not get the money in a lump sum. It is a credit. Read the link above for details and talk to an accountant for tax advice.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Mon Feb 23, 2009
Hi, Steve,

Put simply...here is how it works. Buy a home from 01/01/2009 through 11/30/2009 and you will receive 10% of the sale price - up to a maximum of $8,000 - as a tax credit if you are a first time buyer, or if you have not been on a deed for 3 years.

If you settle before you file your taxes for 2008, you can claim the tax credit on the 2008 return so that you can get the money right away. If you file your taxes and then purchase, you will have to check with your tax preparer to see how quickly you can get the refund.

I don't know what the $7500 FHA loan is that you refer to. That was probably the previous tax credit from 2008. Forget about that...it's over, but the $8,000 is better because it doesn't have to be repaid.

You can also get up to 6% seller assist towards your closing costs. That should get you going into your new home.

If you need any additional help, please contact me at your convenience.

Carol Murray Cei
ReMax Millennium
215-649-1720
carolcei@remax.net
0 votes Thank Flag Link Sun Feb 22, 2009
Steve, to purchase the property you would still need 3.5 percent down of the sales price with FHA. FHA does allow up to a 6 percent sellers assist which basically covers all of your closing costs if you can get that included in the deal.

The revised $8,000 tax credit (was $7,500) is a great opportunity for a first time homebuyer to take advantage of before the end of November this year.

Check out our site which has a chart about the tax credit.

http://www.thesomersteam.com and

http://www.thesomersteam.com/pdf/taxcredit.pdf
0 votes Thank Flag Link Sun Feb 22, 2009
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