Comments on: First Time Buyer Housing Tax Credit Loophole?

By: Courtney Cooper

Courtney Cooper — Sat, 13 Mar 2010 19:08:43 +0000

HI EM – I missed the last one – sorry:) I think I agree with your tax preparer on it – the family connection seems to be a killer according to any tax person I have talked to…. In the future if you itemize, the interest on the house might be a good thing, though, as you can write that off…

By: Em

Em — Sat, 13 Mar 2010 19:06:08 +0000

Is this thread not being answered anymore??? Posted a question with no reply….??

By: Em

Em — Sat, 06 Mar 2010 04:32:43 +0000

Ok, first time home buyer… Prob is, I bought it from family… Now I know I dint qualify for the 8k credit… But, never have done my own taxes…, am I able to claim ANYTHING on my home? After I told my tax preparer it was thru family she just dropped the whole house issue completely… I didn’t itemize anything on my taxes… But do I claim any part of it or do you do your taxes as if there wasn’t even a house or did she screw up and over looked my house..? I find it hard to believe that there isn’t anything I can claim on my house…?

By: ARDELL

ARDELL — Thu, 04 Mar 2010 22:58:33 +0000

Michele,

It is likely that at the time you purchased the home, it was the first tax credit which was a 15 year interest free loan. As far as I know, everyone had to pay that credit back over a 15 year period at $500 a year, whether they kept the home or not. But check with a tax accountant as it depends on the actual date of purchase.

The original credit that was passed under the Bush Administration was a loan.

By: Michele

Michele — Thu, 04 Mar 2010 20:10:07 +0000

So, I purchase a home, get 1st time home buyer tax credit. Two years later, I lose my job and was unemployed for 4 months! Yikes! Now I am working temp-to-hire @ half the salary I was making. I HAVE to sell my house….I am going through all my savings and then some.
What is going to happen? Do I have to lose money on the sale (after I used the tax credit to remodel the kitchen and repaint entire inside of home)?
Am I going to be forced to pay back the $7500 to the IRS now? I’m not sure what my options are at this point.
Thank you

By: Candice

Candice — Fri, 05 Feb 2010 05:48:44 +0000

I agree! I’m in the same boat as you. What makes me sooooo angry is that no one from the mortgage people to the title office…nobody told us about this. Its sneaky and deceptive. I bought my house fair and square and I feel COMPLETELY ripped off!! I was going to use this money to purchase new windows and updates for the house. Is there anything I can do, or someone I can talk to? This just isnt fair (and dont tell me thats life or I’ll start throwing shoes j/k)

By: J

Fri, 05 Feb 2010 03:52:10 +0000

I sold a home (Property A) that I owned with my ex-wife on Jan. 31 2007. However, I stopped living in Property A on Apr. 1 2006. In other words, Property A was no longer my main home as of Apr. 1 2006 when I moved myself and my belongings to a temporary rental situation. At no time during the period from April 1 2006 to Jan. 31 2007, was Property A my “main home”. During that time, I lived at two temporary shared rental locations: X from April 1, 2006 to August 1, 2006 and Y from August 1, 2006 to Feb. 1, 2007. I purchased a new home (Property B) with my current wife (a 1st-time home buyer) on May 28, 2009. I should qualify for the $8,000 tax credit because neither myself nor my current wife owned a “main home” during the 3-year period prior to purchasing our home (Property B) on May 28, 2009?

If I am audited, what type of documentation will I need to supply to show that, although I did not sell Property A until Jan. 31 2009, it stopped being my “main home” on April 1, 2006. The documents that I currently have are the following: 1)When I renewed my state driver’s license on my birthday in October 2006, it lists Y as my address. 2) A bank statement I found in my records from August 2006 lists Y as my address. 3) A credit card statement from April 2006 shows my address at X. 4) I have a copy of a rental agreement showing that I began renting X on Apr. 1 2006. and 5) I have a copy of a rental agreement for Y showing that I began renting Y on August 1, 2006.

Any thoughts on my situation?

By: Frustrated!

Frustrated! — Wed, 27 Jan 2010 01:11:19 +0000

OK, so if you have a REAL and LEGAL purchase through a bank loan, how is it logical and fair to deny you tax credit if it was purchased from family?! I understand if it was all “under the table” but seriously, a legal bank transfer? That is just ridiculous! Just another way to make sure the gov can same more money!

By: Trenise

Trenise — Mon, 25 Jan 2010 16:55:56 +0000

I came across this site when googling a question about the First Time Home Buyers Credit. Wondering if maybe you had some insight on my situation. My grandmother has Alzheimers, we recently put her in a home, my Aunt became her Trust. My husband and I wanted to buy her house. My credit is no good so my Husband purchased the house with my father. I am not on the deed or mortgage. It is my husband and my father. We just used my dad for his credit basically. Anyway, with that said. My father does not want to claim the credit, he wanted us to. Can my husband claim the tax credit even though it was my grandmothers house considering that i am not actually a buyer of the house. We were never told it was going to be an issue. I would like to think that because Im not on the house that it is possible but what do I know?? Thank you!

By: Dave

Dave — Fri, 08 Jan 2010 05:04:12 +0000

Great question – I’m stumped on this myself…I signed over ownership of a home I owned in a previous marriage in June of 2006. I remarried in April of 2008…and then my wife who is a first time homeowner bought a home in Feb of 2009 – my name is no where on the paperwork and the home is completely in her name…so technically I’d probably have a tough time claiming ownership of this home as it is – I can’t even get info from the mortgage company until we add my name!!

If the definition of first time home owner hinges on the definition of the Main Residence here, “the residence I’ve lived in the most” – I haven’t had one that’s qualified as a home since June of 2006…since then I’ve been renting. We bought this home because the realtor we used sold us on the deal with this tax credit in mind. So as I ready our tax info for this year, I’m just learning about the fact that we may not qualify now…so we’re really unhappy at this point until we can find out more…