Discussion:$8,000 first-time buyers credit - file late 08 return to claim?
From TaxAlmanac
Discussion Forum Index --> Basic Tax Questions --> $8,000 first-time buyers credit - file late 08 return to claim?
Discussion Forum Index --> Tax Questions --> $8,000 first-time buyers credit - file late 08 return to claim?
| 27 May 2009 | |
| My client did not file 2008 taxes b/c of no income but she was a dependent on parents 2008 tax return. She is now employed and just bought a house (130K). Can she file and get the $8000 first-time home buyers credit in 2008 without parents amending to remove her? | |
| 27 May 2009 | |
| I don't think it will be necessary to file an amended return to remove her as a dependent. The list of "who cannot claim the credit" does not specifically indicate an individual claimed as a dependent on another's tax return. It would appear in this situation that the parents have nothing to do with it and that you could file a 2008 return for your client with the line C Form 5405 election checked to claim the credit and leave the 1040X completely out of it. | |
Wkstaxprep (talk|edits) said: | 28 May 2009 |
| She bought the house in 2009, so even though you're amending the 2008 return it's actually a 2009 item.
The IRS is allowing individuals to get use of the money by filing an amended return for 2008 even though in reality the credit is a 2009 credit. Chances are taxpayer will file independent for 2009 anyway so I don't see any issues here at all. | |
| 28 May 2009 | |
| Assuming the house was bought this year, the credit can be claimed in 2009. The credit is only available to individuals who purchase a principal residence after April 8, 2008 and before July 1, 2009. The credit is the lesser of: $7500 or 10% of the purchase price of the home. Taxpayers who take this credit must repay it in equal installments over 15 years. The IRS will likely add a line to the 1040 to report the amount of the first-time home buyer tax credit that the taxpayer is repaying. | |
| 28 May 2009 | |
| Agham, please make use of the info on the FTHB recap to update your knowledge. You're referring to the old rules from HR 3221, but those rules were modified by 2009's HR 1. Also you're unnecessarily limiting when the credit could be taken under either set of rules. | |
| 29 May 2009 | |
| IRS: "This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns."
IRS: "Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return." I am assuming that the taxpayer is buying the house in 2009 and wanting to take the credit on her 2008 amended return. I agree with Chatdawg that nothing in the instructions precludes claiming the credit as a dependent of another. (Unless she is a Republican :) | |
