$8000 first time home buy tax credit

[BWillie]

Last year there was a $7500 tax credit for first time home buyers, but it was basically just a interest free loan as far as I know. I don't really care if you give me $7500 now if I have to pay it back, still a decent deal but now I heard that if you are a first time home buyer and purchase a home this year you get $8000 and you don't have to pay it back as long as you have the home for 3 years.

I read the federal website about it, and it looks like a pretty good deal. I'm a little confused on when it is paid out. It appears if I bought a house now, I would have to wait till next tax season to get it, but I'm not sure.

I found a cool house in Eastern Shawnee for 150K with a nice finished basement. I plan on living in the finished basement and renting out the top 3 rooms to a few friends so they can pay my mortgage for me. I'm pretty sure I can still get the tax credit even if I claim rental income from the property, but not sure.

Anybody else planning on planning on buying a house in the near future or know about this?

Anybody else own their own home and rent it out to people? Can you get away with not claiming the income or only a portion of it? I know if you can write alot off for your home if you rent it out because it's a rental property, but just don't know to what degree. Basically, I live in the same scenario right now but I don't own the house, but I'm responsible for renting it to other people. They pay me, and then I pay the landlord. So it looks like I'm making $1200 a month in rental income, and not claiming it. Wonder if I'll get audited?

Anyways, thought this credit was a great deal and hopefully will revitalize the housing industry. On the flip side, I'd be pretty poed if I bought a home last year and still have to pay the $7500 back.

If anybody has any tips or legal info about renting out your own home free rep to you.


http://www.federalhousingtaxcredit.com/