Who's planning on trying to take advantage of this?

Here's the website: http://www.federalhousingtaxcredit.com/

Here's the basic explanation from the website:

Quote :

" * The tax credit is for first-time home buyers only. * The tax credit does not have to be repaid. * The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000. * The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009. * Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. "

From the FAQ and this website http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/?postversion=2009021617, it seems as though I can get this tax credit with my 2008 tax return. This means that I could use this $8000 tax credit for my down payment as long as I buy the house before Dec. 1st, 2009 (and meet the other requirements). Am I wrong?

/obligatory "You're not wrong Walter, you're just an asshole"

2/19/2009 8:52:15 PM

This kicks so much ass.

We were going to buy a house this summer regardless of incentives.

The fact that we're apparently going to get $8k for doing so, and that we'll be able to get a 4.5-4.8% 30-year fixed is just icing on the cake.

2/19/2009 8:58:14 PM

Quote :

"Single taxpayers with incomes up to $75,000"

booooooooo

and up to 10% or 8k? who the fuck can make 75k and afford an 800k house...even a DINK making 150k is going to have to stretch far as shit to even get close to that

2/19/2009 9:00:45 PM

^You can still get part of the credit if you make more than $75,000.

Quote :

"The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts."

Oh yeah and 10% of $800,000 is $80,000 and not $8,000



[Edited on February 19, 2009 at 9:08 PM. Reason : haha]

2/19/2009 9:05:02 PM

haha - oops - i knew something was off

I guess watching aqua teen really does damage your brain

but I shall not edit so everyone can laugh at me

depending on these interviews this week I may not even qualify for a partial credit...oh well...
that $500 rebate thing bush passed netted me 34 bucks

[Edited on February 19, 2009 at 9:15 PM. Reason : .]

2/19/2009 9:13:14 PM

i'm still confused as to what this does for anyone...so, if you buy a house, knock up to $8k off the price, just for shits and giggles?

and yes, i'm bitter because i bought a house back in may of last year and i'm not some dumbass who bought something they couldn't afford

2/19/2009 9:20:24 PM

^From what I've seen, it will be evidently be added to someone's refund (or subtracted from their payment) in tax-time for 2010.

If your refund on 2009 taxes would be $2k, you get a $10k refund check.

If you would have owed $1k for 2009, you would get a $7k check.

2/19/2009 10:37:10 PM

It's an 8k tax credit, so if you paid 10k in taxes this year, your taxes will be reduced to 2k. You can also claim it on last years taxes, so that you see the money this year, even if you have already filed, by doing an ammended return.

2/20/2009 9:10:01 AM

JUST SO YOU KNOW

FIRST-TIME HOMEBUYERS ARE ONLY PEOPLE THAT HAVE NOT OWNED A HOME IN THE PAST 3 YEARS. BEFORE THAT YOU COULD HAVE OWNED 1000000 HOMES.

2/20/2009 10:21:12 AM

i still don't quite understand the point of this, though

okay, so people who can afford a home and are relatively sure they'll have a job to support it (i assume people take that into consideration, especially in this economy) get an $8k cookie for taking the plunge? while those people who bought home and were laid off get a big "sucks to be you"?

not that i'm in favor of bailing out those who were unlucky...i don't think they deserve it and it certainly does suck, but sometimes shit happens

what i'm not liking about this is, though, is that it's only providing incentives for people who were going to buy a house in the first place...if $8k pushes you over into the "okay, i'm gonna buy a house!" category, rather than being the icing on the home-buying cake, you should probably save your monies and be a renter

then again, i'm not an economist, so i might not fully grasp the full extent of what this is supposed to do

[Edited on February 20, 2009 at 10:52 AM. Reason : and yes, i've already mentioned that i'm slightly bitter...i want an $8k cookie!]

2/20/2009 10:51:20 AM

Quote :

"what i'm not liking about this is, though, is that it's only providing incentives for people who were going to buy a house in the first place...if $8k pushes you over into the "okay, i'm gonna buy a house!" category, rather than being the icing on the home-buying cake, you should probably save your monies and be a renter"

its an incentive to get people to buy houses. and it'll sure as shit motivate some people to buy houses. hell i was planning on buying another in 09 if they were going to do the $15K they were talking about.

2/20/2009 10:58:23 AM

^ i realize that...i guess i was breaking down the $8k into what difference it makes in terms of a mortgage, which, at 5% and 30 years, is only ~$23 less each month...if the big $23 savings was all it took to change a person's mind, then yeah, i think it's pointless

BUT, really, i don't suppose that's correct...you're not getting that money off your mortgage payment, you're getting cold hard cash...that's no closing costs and extra money to make improvements (i suppose it depends on how you rationalize it)

i suppose if the government said to me, as they're saying to everyone else who hasn't bought a house in 3 years: "hey, will you go build some equity if we give you $8,000 dollars?", yeah, i'd probably do it

i think i might just sell my house to my girlfriend...she can get a nice 3.5% fixed 30-year loan and we'll split the $8k 50/50 in addition to my profit

[Edited on February 20, 2009 at 11:28 AM. Reason : .]

2/20/2009 11:27:20 AM

^

The way you're looking at it, I see how it doesn't make sense, if the 8k is used simply to put towards the mortgage. Like you said it won't really lower the payments at all.

But they way I'm looking at it is, I can buy a house that may be a little cheaper because it's outdated and may need some small repairs and use the 8k to do renovations. I've been looking for a house way before this tax credit was passed but now that it has, I can look at houses that may need to be fixed up a bit and know 8k of the renovations I won't have to worry about...

I'm sure this logic isn't the reason why this credit passed, but it's the way I'm looking at it.

[Edited on February 20, 2009 at 3:37 PM. Reason : .]

2/20/2009 3:37:19 PM

^ that's a good point...i'm looking at this from my extremely limited and minutely bitter viewpoint

seriously, though, if i propose to this girl, i'll have her buy my house

2/20/2009 3:47:23 PM

I think it would be possible to take advantage of the credit for your down payment. For example, you could fill out a new w4 today and state that you expect to have no fed. tax liability for 09. Then you could take the extra money every paycheck and save it for the down payment/cc (up to $8,000 before you fill out a new w4, unless you wanna owe taxes next April). While it probably wouldn't help EVERYone buy a house, it would be an incentive for those that have a saved almost enough up until this point. For example, you may have 3% downpayment saved up, but not enough for cc/fees/inspections/whatever else, or vice versa with cc/downpayment.

2/20/2009 4:49:30 PM

you DO have to pay it back

they're going to keep an extra $500/year from your taxes for the next 15 years if you do the $7500 option.

2/20/2009 4:59:29 PM

Quote :

"you DO have to pay it back they're going to keep an extra $500/year from your taxes for the next 15 years if you do the $7500 option."

no you don't (not for the 2009 credit). i think you're confusing two different programs. there is no option. you fall under one or the other depending on when you bought your house.

http://www.federalhousingtaxcredit.com/

2/20/2009 5:05:29 PM

answered before I read the details you are correct

sadly, my housing tax credit DOES have to be repaid (bought Aug '08). NOT FAIR

2/20/2009 10:16:36 PM

i'm getting married in june...anyone know if i could sell my house to my fiancee (who has never owned a home) to get the 8000 bucks?

2/21/2009 9:30:47 AM

^Yes, you could. But it would have to be before you get married and she would have to get the loan in her name only. That would be good though if you ever want to buy another home though, because then you could be considered a first time buyer (if it's been 3 years since you sold it to your wife).

The only issues you could have is that the two of you might would have to file married filing seperately (since you were not a first time homeowner) for the first year. Of course if something happens before you get married too, you'd be out of a wife & a home.

2/21/2009 10:23:41 AM

After talking to the IRS, I was just informed that you have to actually close on the house before getting the $8000.

I believe for last year's $7500 tax credit you could use the tax credit on the downpayment.

2/23/2009 3:36:03 PM

^
That's correct, you could get the $7,500 refunded to you, put it into an account, then utilize it as a part of the down payment. No idea if you can double-dip into both if you got the $7,500 before the cutoff. Thoughts anybody?



[Edited on February 24, 2009 at 9:05 PM. Reason : .]

2/24/2009 9:02:09 PM

The original $7500 credit was set to run through July 09 (or something like that) and they amended this law to $8000 with no repayment for 2009. It's 1 law that got changed, so either you qualified for the 7500 credit in 08 or you qualify for the 8000 credit in 09. There is no 7500 (repayment required) credit for purchases in 09.

2/25/2009 12:28:53 PM

Just closed on my house yesterday.

4.5% 30-year fixed mortgage, $8k bonus from Uncle Sam. I was literally laughing all the way home from the bank.

[Edited on February 25, 2009 at 3:37 PM. Reason : d]

2/25/2009 3:36:35 PM

be sure to not pay for any of it so the government will just completely remove your mortgage in a few months

2/25/2009 3:39:44 PM

^In a few years, my mortgage payment will barely buy a loaf of bread anyway, so....

2/25/2009 3:55:20 PM

^^^ was with APR, and with or without points paid?

2/25/2009 3:57:46 PM

no points paid.

APR comes out to about 4.9 something due to PMI ( )+ .5% "loan origination fee" (which I guess you could call a point, even though my seller paid it)

Planning to get rid of PMI ASAP and then sit on the loan as long as possible.

[Edited on February 25, 2009 at 4:39 PM. Reason : d]

2/25/2009 4:38:16 PM

Yeah, that's more in line with what I figured. I could put 20% down, but I don't really want to...I'd rather have the cash in my pocket, especially since I can buy on a VA loan--basically the whole point is to avoid paying PMI (although I think the interest rate on the loan is usually marginally higher). I think I'm going to just put 10% down, which gets you a little bit better deal on the terms of the VA loan (and, of course, reduces the monthly payment).

2/25/2009 5:07:22 PM

I am very interested in buying a house, but I have no idea where to start. should I first get in contact with a realtor or with fannie mae or what?

3/9/2009 6:39:19 PM

It'd probably be best to visit a bank first and get a pre-approved line of credit (assuming you can get a loan). Then find some houses you like in your range with any MLS search.

3/9/2009 6:42:29 PM

thanks, will do!

3/9/2009 6:43:18 PM

I just wanted to let you all know that the IRS is still not accepting e-filed returns with the $8,000 first time home buyer credit. They havent provided a date of when they will start.

If you absolutely cant wait to file you have two options.
1. E-file with the first time home buyer credit equal to $7,500. You will have to file an amendment to receive the remaining $500.
2. Paper file with the first time home buyer credit equal to $8,000. Expect to wait 4 to 6 weeks to receive refund.

3/9/2009 10:52:32 PM

The $8K isn't for the house. It's for all the stuff you will buy when you move into the house (Washer/dryer, fridge, TV, paint, etc.). There is a lot of economic activity tied with home sales.

3/10/2009 5:23:02 AM

^thats exactly how we are looking at it. She has lived in campus all 4 years because shes been an RA or had other similar roles and just stayed on to save money so she has no furniture herself. Luckily, I do have a full decent living room set, TV, washer and dryer, guest bed etc. But there will still be tons of stuff that would be nice to have when we move into a new house and this money would definitely help that.

3/10/2009 7:58:33 AM

so i wonder how long you have to stay in the house with the 8K free money credit

i know with the 7500 interest-free-loan you have to pay back anything owed on it whenever you sell the house...with that in mind there must be some sort of stipulation on how long you stay in the house with the 8000 one.

3/10/2009 1:19:23 PM

^3 years i believe.

Quote :

"I just wanted to let you all know that the IRS is still not accepting e-filed returns with the $8,000 first time home buyer credit. They havent provided a date of when they will start. "

For what it's worth, taxslayer said they expect the 2009 credit to be available for e-file at the end of the week.

3/10/2009 1:35:27 PM

mine is e-filed.

3/10/2009 4:15:03 PM

we're taking the $7500 since we bought the house in 2008 and paying ahead. On our loan this will save us about $25,000. Sure we have to pay it back, but it's a zero-interest loan. So, ignoring hyperinflation it is pretty much a no-brainer.

3/10/2009 8:16:14 PM

Quote :

"mine is e-filed."

Was it accepted?

3/10/2009 8:32:08 PM

Quote :

"4.5% 30-year fixed mortgage, $8k bonus from Uncle Sam."

That is a fucking phenomenal deal. We bought our house in April of 08 so we'll have to pay back the $5200 credit we qualified for.

3/10/2009 9:22:34 PM

^^ my acountant did it for me so i would thing so.

3/10/2009 10:01:01 PM

Call him. It hasnt been accepted and I hope he informs you of this.

3/10/2009 11:50:05 PM

he just did. he said an update to where it will be accepted may be there by the weekend?


do you think it will be faster to mail it in or wait until the update is there?

3/11/2009 9:30:16 AM

Quote :

"i'm bitter because i bought a house back in may of last year and i'm not some dumbass who bought something they couldn't afford "

Yea this shit makes me so mad. I bought my place in august of last year, so i qualify for last years 7500 credit but i gotta pay that shit back :-P

3/11/2009 1:19:52 PM

Here is the latest update from the IRS...

Quote :

"ATTN: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs Please be advised, returns with Form 5405 claiming the First-Time Homebuyer Credit of $8,000 for homes bought in 2009, will be accepted electronically starting with the 6 PM drain March 30, 2009. Form 5405 can also be transmitted for PATS testing on March 30, 2009, for the 4 PM drain. The revised file specification for Form 5405 will be available on irs.gov March 20, 2009."

If it is accepted on the 30th you will have your refund on April 10th. Mailing your return might be quicker.

3/11/2009 3:11:11 PM

^
Bump on this thread. Turbotax will automatically fill out your 1040X and 5405 forms for you if you already claimed the 7500 and want the 8000 instead. I'm sure the other tax software will as well, but, an FYI for folks out there with filed early with the 7500.

4/4/2009 8:24:33 AM

bttt

Thinking about getting a house, but wanted to use the credit as a down payment. Basically, asking friends/family for $, filing the tax amendment, and then paying them back. Has anyone dones this?

[Edited on July 1, 2009 at 10:32 AM. Reason : ]

7/1/2009 10:31:31 AM

Borrowed money from friends and/or family and paid them back? Yes.

7/1/2009 10:38:41 AM

using the credit. Is that legal?

7/1/2009 10:46:26 AM