Discussion:First Time Home Buyer Tax Credit Refundable Question
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Discussion Forum Index --> Advanced Tax Questions --> First Time Home Buyer Tax Credit Refundable Question
Discussion Forum Index --> Tax Questions --> First Time Home Buyer Tax Credit Refundable Question
| 3 June 2009 | |
| Probono client has minimial income - pays no tax. Usually does not even file a tax return. Lives on disability. Has saved $2,000. We could all learn on how to live on next to nothing from him. Wants to buy small home costing about $30,000 - cheap because it needs work, not in best neighborhood and fronts on a busy major street. It seems to me that he could get a $3,000 tax credit for this but that also seems too good to be true. Looking here for info on anything I may have missed. | |
| 3 June 2009 | |
| I see where he could even get the money faster as he can claim the 2009 credit for a 2009 purchase on a 2008 return. | |
| June 4, 2009 | |
| Why does it sound too good to be true?
If he has not owned a home in the last three years. Then, yes, he does qualify for the First-Time Homebuyers Credit. He can file a 2008 return to receive the money. Or, he can wait and file a 2009 return to get the money. This is the only refundable credit out there now that you are able to file and not have any other income. Granted, he will most likely have to mail his return in. Also, as long as he lives in the house as his main residence for at least 36 months, he will not have to repay the $3,000 back. And only after he goes to closing and receives a settlement statement you can file the return. Not before. If you need anymore reassurance, I know that Kevin, CrowJD, Fred, Taxea, Taocpa, Trillium, or any of the other very competent CPA's and Tax Pro's out there can verify this also. Also, if you need more verification, just go to the IRS website and/or use the little yellow box to your left. | |
| 19 August 2009 | |
| I guess you can twist this a million ways. I have a little different situation. Both taxpayers qualifiy as 1st time home buyers. They are married in 2009 and purchase a home shortly after the wedding. They want to amend their 2008 return(s) to get the credit refunded. In 2008 the wife filed so there is no issue. The husband is on diability and did not have to file. I'm assuming we need to amend her return for 1/2 the credit & then file his return for the other 1/2? Since they were married at the purchase date I don't think I can take the whole credit to her return for 2008 although we get the same net result. Anyone else have anything close to this? I've looked at everything on the IRS site with no guidance. | |
| 19 August 2009 | |
| If they make the election to treat the purchase as taking place on December 31, 2008, then they would be considered as unmarried on the date of the purchase and during the year of the purchase. IRC Sec. 36(g).
Unmarried taxpayers can allocate the credit according their respective interests in or contributions to the property. Presumably, each spouse owns 50% of the residence. Consequently, I would expect that each spouse can claim a $4,000 refundable credit. | |
Wkstaxprep (talk|edits) said: | 20 August 2009 |
| if you want to get very technical, file an amended 2008 tax return refund for the wife for the $4,000 and file an original 2008 tax return for the husband for $4,000. | |
