i baught a house in october 2011! when i file my taxes in 2011, do i get anything back for that! i went through first time home buyers

Asked by Crystal Thorne, Panama City, FL Thu Jan 26, 2012

they gave me 7,500 for downpayment assistance? do i now owe them that back the next 15yrs?

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The Savoy Te…, Agent, Ellicott City, MD
Thu Jan 26, 2012
BEST ANSWER
Yes indeed! If you bought a house in October, give a copy of your HUD to your accountant and they will be able to help you figure out how much you can deduct. If you made your first payment in December, you will also get a statement from your mortgage company that shows the interest you paid in 2011. Give that to your accountant too! Good luck!!
1 vote
Kimberly Bar…, Agent, Annapolis, MD
Sun Feb 5, 2012
Crystal,

You may notice that your tax liability will change when you file your first income taxes after a first home purchase. Your deductions do change and your tax liability is based on those deductions.

Owning a home still allows you to deduct certain items. Be sure to have a copy of your closing HUD1 with you when you meet with your accountant or tax preparer. And ask questions so that you understand everything including all the deductions taken and future tax impact.

Regarding the second part of your question about owing $7,500 in down payment assistance, you will need to consult with the paperwork signed at the time you obtained the down payment assistance (DAP). Some DAP programs are grants that do not have to be repaid; others are due upon the sale of your home or kick in after so many years living in the home.

At the very least, the DAP office should have thoroughly covered every aspect of their program to be sure that you understood your obligations under it before you obtained any funds. Read your paperwork carefully. If you are still uncertain of your obligations under the program, contact the program office for full clarification.

If you worked with an agent, the agent may have helped walk you through the various points of the program. If you didn't understand the DAP program fully at that time, you can still contact your agent to review the program and answer questions. Most agents welcome the opportunity to assist you with questions even well after the purchase of your home.

Either way, don't be shy about contacting the DAP program office or your agent to ask for help.


Kimberly Barton, REALTOR®
CRIS, AHWD, Certified Short Sale & Foreclosure Adviser
Champion Realty, Inc.
410.224.0645 Direct
KimberlyBarton@ChampionRealty.com
0 votes
Akil Walker, Agent, Upper Marlboro, MD
Thu Feb 2, 2012
Hello Crystal,

congrats on your new home. the interest on your Dec. 2011 payment is a deduction and possible closing cost paid. Consult with CPA to ensure maximum tax benefits.

good luck
0 votes
Elva Wormley, Mortgage Broker Or Lender, San Jose, CA
Thu Jan 26, 2012
Hi Crystal,

That's a question for your tax preparer.

Best regards,

Elva Wormley
C2 Financial Corporation
0 votes
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