New home buying tax credit

USER876

There is now a tax credit for repeat buyers as well as for first-time buyers. Taxpayers who have lived in one residence for five consecutive years of the past eight can now qualify for a tax credit of as much as 10% of the purchase price, up to a maximum $6,500, of a new principal residence. The new home does not have to cost more than the old one.---------------------------------------------------------------------------10% of the purchase price up to 6500, that's a 65K house....is that even realistic?  I guess they don't want people collecting the whole 6500 for buying a house for a dollar

cvl105

I'm annoyed that we bought in 2008 and have to repay our "tax credit" and all these people don't.

erikag23

why do you have to re-pay?

cvl105

Cause that was the stipulation that year.  "We'll give you a tax credit of $7500, but you have to pay $500 a year for 15 years back to us".

erikag23

i knew that....i just had a brain fart, but if you applied it towards your taxes there is no re-payment, correct?

cvl105

um, I have no idea. But we don't usually owe.

erikag23

i am probably totally wrong esp since we bought way before this and cannot benefit, but i thought you can use that money to pay your taxes...has nothing to do with owing at hte end of the year.

ffbride_0813

I have the $7500 thing too.  They take $500 a yuear out of what you get back or they tack it on to what you owe.  I usually get back so this year its $500 less.

mrs.spunky1508

That doesn't start til 2010, so no you don't owe anything/get less of a refund this year.

USER876

If you buy in 09 you can apply it to your 08 or 09 taxes......if you buy in 2010 you can apply it to your 09 or 10 taxesYou must be in contract by may 1st 2010 and close on the property by July 1st 2010Must also be  under the income limits and home price must be under the qualifying limitIf not a first time buyer, must have lived in your home at least 5 yrs to qualify, or not owned for 3 yrs.

mrs.spunky1508

Are you responding to me? B/C I was talking to FF about "repaying" the $500 a year. The repayment/less credit doesn't happen until 2010 for those who bought a house in the 2008 tax year (April 9, 2008-December 31, 2008) and got the $7500 credit.

justkris10

I own a home, I bought befoe DH and I met - but won't be there for 5 years before we buy again (hopefully) so my question - do we qualify as first time homebuyers if DH is the primary and I'm joint or co-buyer, w/e they consider it? Or would he have to be on the mortgage by himself?

erikag23

nope.  al bought our current house, so we were hoping for the same thing.  unfortunatly, now that you are married your dh is considered a first time home buyer as am i.  blows donkey balls.

velveena

erika - I'm in the same situation.  I thought Rudy would qualify even though I own, it sucks! Chelsea - I thought you could file an amended return on your old taxes to "switch" over to the new non-repayment credit?  There is definitely a time period for which this is true, check into it... (BTW - I have not had a chance to say Congrats since you got back!  Your pics are so vibrant and beautiful!)

justkris10

that does blow donkey balls, for sure -- wtf But if he gets the house all on his own w/o me...No?

USER876

He would have to buy it and close before you are married

USER876

The whole thing is poorly put together, even the income limits......they double the single filer limit, but not the family, to strategically stay below obama's magic 250K "rich" criteria.  But then they let you collect the rebate up to an 800K home.  Who the hell can buy an 800K home in this state making only 225K?  The taxes alone will be 20-30K.

erikag23

kind of like, if he is in debt you inherit once you are married.

USER876

Yup....the marriage penalty / AMT......great america we live in.

velveena

I love that DH & I together are at the single income limit, yet we still don't qualify.  The house I own is basically in my name because my mom didn't want it anymore, we are still paying off the repairs with the rent, and we don't even live there!!  GRRR

USER876

Best bet it to wait until the artificial injection by the gov is over "home rebates" "low taxes"......then the prices will really fall and you will do much better than the 8K.  It's just a matter of time.

justkris10

good point User, very good point