Comments on: New Home Buyer Tax Credit- Q & A

By: Matt

Matt — Thu, 18 Feb 2010 21:23:27 +0000

Greg- Here are some thoughts from a local mortgage consultant I highly trust-

I assume he means will he qualify on the new home he is buying in March 2010 by himself. If so, he doesn’t qualify for the $6,500 tax credit because he only lived in his previous home for 4 years. The tax credit requires you live in the previous home as a primary residence for 5 consecutive years out of the past eight. Of course he does not qualify for the first time home buyer tax credit because he has owned a home in the most recent three years. I don’t see any way to claim the credit with the limited information provided.

Best regards,
Mickey Brooks
Mortgage Planner
JLB Mortgage Group
11769 Whisper Bay Ct
Carmel, IN 46033
317.218.0283 (Office)
317.218.0291 (Fax)
888.249.4003 (Toll Free)
mbrooks@jlbmortgagegroup.com
http://www.jlbmortgagegroup.com

By: greg rogers

greg rogers — Thu, 18 Feb 2010 13:06:50 +0000

I am getting a divorce april 2010. I will be closing on my house this year march 2010. Ex wife will be keeping our house we shared for the past 4 years. Will i qualify for a tax credit.

Thanks
Greg

By: Matt

Matt — Wed, 03 Feb 2010 16:28:41 +0000

GUEST RESPONSE-

Robert,

Sorry for the delay in responding to your question.

There are many requirements to be able to claim any of the 3 tax credits Congress approved in 2008 and 2009.

This response will only address the issues you brought forward.

First, the date of purchase is the most significant factor in determining if you qualify for a tax credit at all.

For the $7,500 tax credit, which was enacted in July 2008, you must have purchased your first home between April 2008 and December 31st 2008. You qualify for that credit and apparently have filed for it on your 2008 tax return.

To claim the $8,000 tax credit you must have purchased your first home after December 31st 2008. You do not qualify for this credit and can not re-file your 2008 return to claim it.

To claim the $6,500 tax credit (Long Time Resident of the Same Main Home), you must have owned and lived in your previous main home for a minimum of 5 consecutive years in the last eight years prior to the purchase date of your new home and, the new purchase must have occurred after November 6th, 2009. Therefore, unfortunately you don’t qualify for this tax credit either.

Please remember to always contact a qualified tax professional for assistance in these matters.

Best regards,

Mickey Brooks
Mortgage Planner
JLB Mortgage Group
11769 Whisper Bay Ct
Carmel, IN 46033
317.218.0283 (Office)
317.218.0291 (Fax)
888.249.4003 (Toll Free)
mbrooks@jlbmortgagegroup.com
http://www.jlbmortgagegroup.com

By: Matt

Matt — Tue, 02 Feb 2010 17:41:15 +0000

Roberta-

I talked to Mickey Brooks- mortgage consultant extraordinnaire- and he and I agree that you would not be eligible for either tax credit, given the information you provided. Don’t rely on this response, however. I might not have all the information to advise you. Seek independant legal or tax counsel. With that warning, consider this:

You are not eligible for the first time home buyer $8,000 credit because you owned a home in 2008.

Per the terms of the existing homeowner credit ($6,500), the law goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the “date of contract” for the new credit. The law looks solely to the date of purchase, which is generally the date of settlement. This credit is available for home purchase settlements between November 7th, 2009 and April 30th, 2010.

Sorry, but unfortunately I don’t think you qualify for either credit. Again, seek independent legal or tax advice to review all the facts of your situation.

Thanks always to my friend, Mickey Brooks, for help concerning all things mortgage-related.

By: Roberta

Roberta — Mon, 01 Feb 2010 13:55:32 +0000

My husband & I lost our home in May 2008. We were able to buy a house with my husband’s annuity & paid cash for it in August 2009,would we be able to use the tax credit when we do our taxes? We have both been laid-off for over a year(I was laid-off Sept’08 & my husband Dec.’08.I hope you will be able to give us some good news.

By: Matt

Matt — Thu, 28 Jan 2010 11:59:57 +0000

Gopal-

I think you’re confusing the $7500 program and the replacement $8000 program. The two programs are different in several ways, even though both are part of the New Home Buyer Credit law. For example, the $7500 is more like a loan from the government that must be repaid. The $8000 is a tax credit.

I consulted with several knowledgable experts in this field and reviewed the statute, and I cannot find a provision in the law allowing you to “switch” programs and get the extra $500. Sorry.

-Matt

By: Gopal Krishan

Gopal Krishan — Thu, 21 Jan 2010 22:37:23 +0000

Matt – I bought a house on 01/28/2009 and had immediately filed my tax papers, getting a refund of $7500. I also got to know that I was eligible for $8000 refund as per the new ruling, but unfortunately was not able to file amendment for my tax returns. Can i claim the remaining $500 on when i file tax returns for 2009??

Gopal

By: Robert

Robert — Sat, 16 Jan 2010 00:34:55 +0000

My wife and I purchased our first home in October 2008. We also took advantage of what we thought was a great deal with the $7500 credit to be repaid. Now the deal is even sweeter. There have been numerous people saying we can refile last years taxes and get a partial credit for the Extended Home Buyer Credit for those people who have bought in the last 5 years. Is this correct? Also, since the new credit does not have to be repaid, is there no way to get around the $7500 that we owe? Thanks for your help!

By: Ryan

Ryan — Mon, 23 Nov 2009 00:51:07 +0000

My girlfriend and I are both planning to purchase my parents house. I know I am not eligible for the tax credit, but unsure about my girlfriend. So can she claim the credit even if she is jointly purchasing the house with someone who is a direct relative of the seller? If she cannot, where is this spelt out? Having a hard time finding information for this scenario.

By: Matt

Matt — Mon, 16 Nov 2009 23:33:08 +0000

Mickey-

Chris, who is a missionary serving overseas, has a questions as well.

thanks.

-Matt