Home and Auto $8000 first time home buy tax credit

BWillie · 04:53 PM

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/

**007** · 02-18-2009, 04:45 PM

These tax credits are misleading though. It encourages people to take on loans they can't afford just so they can take advantage of a tax credit. Not saying that is what you are doing, just that people will do this.

**Bob Dole** · 02-18-2009, 04:48 PM

How about those of us who bought a ****ing house we could actually afford? When do we get OUR reward?

BWillie · 02-18-2009, 04:49 PM

Quote:

Originally Posted by Guru

These tax credits are misleading though. It encourages people to take on loans they can't afford just so they can take advantage of a tax credit. Not saying that is what you are doing, just that people will do this.

I somewhat agree. I made 54K last year and plan on renting out 3 rooms for $425 a month. I should have a ton of money left over to pay the $1200 or so mortgage and utilities I would think? But I'm sure alot of people just scraping by will look at this as just getting a free 8 grand to spend on whatever they want. What if they blow the 8 grand and get their house foreclosed before they are in it for 3 years. The government is going to want their money back. Could make for alot of problems.

**007** · 02-18-2009, 04:49 PM

Quote:

Originally Posted by GoBobDole

How about those of us who bought a ****ing house we could actually afford? When do we get OUR reward?

Don't get me started on that one. heh Irritating isn't it?

Demonpenz · 02-18-2009, 04:54 PM

in fairness alot of people like me didn't understand what an Arm loan is. Now that rackett has to stop right now, that shit should be legal

beavis · 02-18-2009, 05:24 PM

Quote:

Originally Posted by GoBobDole

How about those of us who bought a ****ing house we could actually afford? When do we get OUR reward?

It comes with the plan. You get to pay for all the dumb****s that overextended themselves.

**penguinz** · 02-18-2009, 05:28 PM

Quote:

Originally Posted by Demonpenz

in fairness alot of people like me didn't understand what an Arm loan is. Now that rackett has to stop right now, that shit should be legal

I have an ARM and it is a great loan. I am 5 years into it and it is at 5.25%. Was at 4.25% when I got it.

ARM's aren't bad if you do your homework first and don;t get one designed to **** you over.

TEX · 02-18-2009, 05:31 PM

Quote:

Originally Posted by beavis

It comes with the plan. You get to pay for all the dumb****s that overextended themselves.

Exactly and that's what pisses me off to no end...

**Iowanian** · 02-18-2009, 05:32 PM

I helped a relative buy her first home this week. We talked about affordability, additional and unexpected expenses, taxes, association fees, repairs, insurance etc. When this topic came up I talked with her about the importance of using the money wisely. Put it into the house with either a large mortgage payment, or into improvements to the home...carpet, tile, fixtures..whatever. I'm glad it will help her.

Spending that money on shoes would be stupid.

Now.....where do I line up in the "I'm screwed for being fiscally responsible" picket line?

I wondered about "selling" our house to the wife for what we owe plus a private note for home repairs, and qualify with this and a better interest rate?

Deberg_1990 · 02-18-2009, 05:45 PM

Quote:

Originally Posted by TEX

Exactly and that's what pisses me off to no end...

This country was built on credit and everyone living beyond their means for the past 25 years!

CaliforniaChief · 02-18-2009, 05:51 PM

I was one of the beneficiaries of the $7,500 credit. I didn't buy the house because I'd get the credit. That was just a nice surprise when I did my taxes. I bought the house because 2 years ago it was worth $600,000 and I got it for half of that. Unfortunately I'll have to pay mine back, but it definitely helped us get rid of debt and build savings, which was not what the government hoped I would do with it obviously.

**Iowanian** · 02-18-2009, 05:59 PM

You know what pisses me off?

The notion by people who think they should stop paying their mortgage because "the house isn't worth as much as I owe".

If the dumbasses would think about it, and keep paying their bills, eventually, things will work back up, and they'll be on top again. If you can't afford it, you shouldn't have bought a house you shouldn't have been in anyway.

Deberg_1990 · 02-18-2009, 06:04 PM

Quote:

Originally Posted by Iowanian

You know what pisses me off?

The notion by people who think they should stop paying their mortgage because "the house isn't worth as much as I owe".

If the dumbasses would think about it, and keep paying their bills, eventually, things will work back up, and they'll be on top again. If you can't afford it, you shouldn't have bought a house you shouldn't have been in anyway.

This is exactly what happened to my Sister in law and her husband about a year and a half ago.

They bailed on their house.

**DaFace** · 02-18-2009, 06:25 PM

Quote:

Originally Posted by beavis

It comes with the plan. You get to pay for all the dumb****s that overextended themselves.

To be fair, this credit is paying for new buyers only - not those who got themselves into trouble. The latter are being addressed by another plan in the works, though.

02-18-2009, 04:43 PM
BWillie Are you ready to Rumble? Join Date: Apr 2006 Casino cash: $-1548759	$8000 first time home buy tax credit 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/ Last edited by BWillie; 02-18-2009 at 04:53 PM..
Posts: 53,027

02-18-2009, 04:45 PM	#2
007 Shaken. Not stirred. Join Date: Sep 2002 Location: London Casino cash: $12100126 VARSITY	These tax credits are misleading though. It encourages people to take on loans they can't afford just so they can take advantage of a tax credit. Not saying that is what you are doing, just that people will do this. __________________ My dear girl, there are some things that just aren’t done. Such as, drinking Dom Perignon ’53 above the temperature of 38 degrees Fahrenheit. That’s just as bad as listening to the Beatles without earmuffs.
Posts: 65,741

02-18-2009, 04:48 PM	#3
Bob Dole King Shit of **** Mountain Join Date: Aug 2000 Location: Texarkana, Texas Casino cash: $-1414563	How about those of us who bought a ****ing house we could actually afford? When do we get OUR reward?
Posts: 51,639

02-18-2009, 04:54 PM	#6
Demonpenz Woman should only make babies Join Date: Nov 2003 Location: Apartment "G UNIT!" Casino cash: $-463864	in fairness alot of people like me didn't understand what an Arm loan is. Now that rackett has to stop right now, that shit should be legal __________________
Posts: 54,961

02-18-2009, 05:32 PM	#10
Iowanian Supporter Join Date: Aug 2000 Location: Utopia Casino cash: $1638454	I helped a relative buy her first home this week. We talked about affordability, additional and unexpected expenses, taxes, association fees, repairs, insurance etc. When this topic came up I talked with her about the importance of using the money wisely. Put it into the house with either a large mortgage payment, or into improvements to the home...carpet, tile, fixtures..whatever. I'm glad it will help her. Spending that money on shoes would be stupid. Now.....where do I line up in the "I'm screwed for being fiscally responsible" picket line? I wondered about "selling" our house to the wife for what we owe plus a private note for home repairs, and qualify with this and a better interest rate?
Posts: 62,945

02-18-2009, 05:51 PM	#12
CaliforniaChief #RIPAce Join Date: Jan 2009 Location: So Cal Casino cash: $10475899	I was one of the beneficiaries of the $7,500 credit. I didn't buy the house because I'd get the credit. That was just a nice surprise when I did my taxes. I bought the house because 2 years ago it was worth $600,000 and I got it for half of that. Unfortunately I'll have to pay mine back, but it definitely helped us get rid of debt and build savings, which was not what the government hoped I would do with it obviously.
Posts: 17,472

02-18-2009, 05:59 PM	#13
Iowanian Supporter Join Date: Aug 2000 Location: Utopia Casino cash: $1638454	You know what pisses me off? The notion by people who think they should stop paying their mortgage because "the house isn't worth as much as I owe". If the dumbasses would think about it, and keep paying their bills, eventually, things will work back up, and they'll be on top again. If you can't afford it, you shouldn't have bought a house you shouldn't have been in anyway.
Posts: 62,945