Buy a home, get $8,000?

#26
#26
droski said:
i think it will help certainly. many people like myself didnt' buy a home because we thought that housing prices were massively overpriced and the rent to buy ratio was way off in terms of investment purposes. this combined with the lowest mortgage rates in 30 years has to help to some degree. at least it makes more sense than 90% of the rest of the bill.
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I see - just looking out for yourself...:)

I'm in favor of this provision but think it should have been a larger part of the bill and open to more folks to really help the housing market.
 
#27
#27
volinbham said:
I see - just looking out for yourself...:)

I'm in favor of this provision but think it should have been a larger part of the bill and open to more folks to really help the housing market.
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Limiting it to first timers certainly will not help move the vast majority of the inventory that's out there.
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#28
#28
I bought a home in December 08....when I did my taxes I found out that you have pay the IRS the tax credit loan back over so many years. You pay $500 a year back to the IRS. If you move from your home...your tax credit loan amount you still owe the IRS is due the day your home is not you residence. So....being that I'll be moving in 3 yrs I declined the loan.
 
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#29
#29
Well there was a tax credit issued by Bush in 08, and you do have to pay that back. I understand that with Obama's plan it's a Tax CREDIT of 8k that you do not have to pay pack? Can someone clarify?
 
#30
#30
volmanic said:
Well there was a tax credit issued by Bush in 08, and you do have to pay that back. I understand that with Obama's plan it's a Tax CREDIT of 8k that you do not have to pay pack? Can someone clarify?
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That is correct, my wife is a CPA and in the middle of tax season. She said that if the closing was in '08, the credit has to be paid back.
The '09 rule is if you are in the house for at least three years, the credit does NOT have to be paid back.
 
#32
#32
T-TownVol said:
That is correct, my wife is a CPA and in the middle of tax season. She said that if the closing was in '08, the credit has to be paid back.
The '09 rule is if you are in the house for at least three years, the credit does NOT have to be paid back.
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Thanks for the info T-Town. So when my wife and I file our taxes next year (given we do not owe anything) we should get 8k added onto whatever taxes are given back to us. AS long as we live in the house for more than three years, that 8k credit will never have to be paid back? Now if we were to move/sell the home before the three years ends, then we would owe that 8k back. Right?
 
#33
#33
volmanic said:
Thanks for the info T-Town. So when my wife and I file our taxes next year (given we do not owe anything) we should get 8k added onto whatever taxes are given back to us. AS long as we live in the house for more than three years, that 8k credit will never have to be paid back? Now if we were to move/sell the home before the three years ends, then we would owe that 8k back. Right?
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See, now you are asking specific tax questions to a salesman.
I will ask her the specifics and get back to you.
But yes, if you live in the house for three years, it does not have to ever be paid back. The 8K might be spread out over those three years, I am not sure.
As for as moving in less than three years, there is probably a "credit for time" that will take away some of that 8K.
 
#34
#34
T-TownVol said:
See, now you are asking specific tax questions to a salesman.
I will ask her the specifics and get back to you.
But yes, if you live in the house for three years, it does not have to ever be paid back. The 8K might be spread out over those three years, I am not sure.
As for as moving in less than three years, there is probably a "credit for time" that will take away some of that 8K.
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Now I am confused. See what you can find out for me and PM me. From what I read there where three scenarios.

  1. You pay your taxes. You owe nothing to Uncle Sam, and Uncle Sam owes you nothing. You're a first time homebuyer in 09. Your tax refund will be $8,000.00
  2. You pay your taxes. You end up paying Uncle Sam more than you should you. Uncle Sam owes you $2,000. You're a first time home buyer in 09. Your refund check will be $10,000.
  3. You pay your taxes. You end up owing Uncle Sam $1,000.00. You're a first time homebuyer in 09. Your refund check will be $7,000.00.
 
#35
#35
volmanic said:
Now I am confused. See what you can find out for me and PM me. From what I read there where three scenarios.

  1. You pay your taxes. You owe nothing to Uncle Sam, and Uncle Sam owes you nothing. You're a first time homebuyer in 09. Your tax refund will be $8,000.00
  2. You pay your taxes. You end up paying Uncle Sam more than you should you. Uncle Sam owes you $2,000. You're a first time home buyer in 09. Your refund check will be $10,000.
  3. You pay your taxes. You end up owing Uncle Sam $1,000.00. You're a first time homebuyer in 09. Your refund check will be $7,000.00.
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I have great news for you! You understand it 100% correct. It is a bottom line lump sum.
Congrats!
 
#36
#36
volmanic said:
Now I am confused. See what you can find out for me and PM me. From what I read there where three scenarios.

  1. You pay your taxes. You owe nothing to Uncle Sam, and Uncle Sam owes you nothing. You're a first time homebuyer in 09. Your tax refund will be $8,000.00
  2. You pay your taxes. You end up paying Uncle Sam more than you should you. Uncle Sam owes you $2,000. You're a first time home buyer in 09. Your refund check will be $10,000.
  3. You pay your taxes. You end up owing Uncle Sam $1,000.00. You're a first time homebuyer in 09. Your refund check will be $7,000.00.
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Uhh... if you owe a thousand, you just get a thousand in credit (not the remaining $7000 in cash). If you owe six thousand, you get six thousand in tax credits. if you owe $8001, you the full $8000 and the IRS mails you a check for a dollar. I don't think it is set up like the Earned Income Tax Credit, where you get money back even if you didn't pay taxes.
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#37
#37
Rasputin_Vol said:
Uhh... if you owe a thousand, you just get a thousand in credit (not the remaining $7000 in cash). If you owe six thousand, you get six thousand in tax credits. if you owe $8001, you the full $8000 and the IRS mails you a check for a dollar. I don't think it is set up like the Earned Income Tax Credit, where you get money back even if you didn't pay taxes.Posted via VolNation Mobile
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Yes it is, my wife, a CPA, called and got a clarification from the IRS on it. It is a bottom line cash value credit.
 
#40
#40
..
Honk298.gif
 
#41
#41
T-TownVol said:
Yes it is, my wife, a CPA, called and got a clarification from the IRS on it. It is a bottom line cash value credit.
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If that is really the case, then that is an abomination. If you only earned enough to owe $5000 in taxes, then the way I thought tax credits work is that you get a credit of $5000 and nothing more above what you actually owe the IRS. If you owe any amount over $8000, you get to deduct the full $8000 amount from the sum total of taxes you owe. If you owe Uncle Sam diddly squat, you get diddly squat because you have no need for a tax credit if you don't owe taxes.

If it works the way you are saying, then it is just an $8000 cash giveaway... not a "tax credit".
 
#42
#42
Rasputin_Vol said:
If that is really the case, then that is an abomination. If you only earned enough to owe $5000 in taxes, then the way I thought tax credits work is that you get a credit of $5000 and nothing more above what you actually owe the IRS. If you owe any amount over $8000, you get to deduct the full $8000 amount from the sum total of taxes you owe. If you owe Uncle Sam diddly squat, you get diddly squat because you have no need for a tax credit if you don't owe taxes.

If it works the way you are saying, then it is just an $8000 cash giveaway... not a "tax credit".
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and this surprises you with this administration...if you earn enought to be over the standard deduction, then it is a cash rebate, if you do not earn enogh to be over the standard deduct, you ain't buying a house in this market
 
#43
#43
T-TownVol said:
and this surprises you with this administration...if you earn enought to be over the standard deduction, then it is a cash rebate, if you do not earn enogh to be over the standard deduct, you ain't buying a house in this market
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You aint kiddin :ermm:
 
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