Home and Auto $8000 first time home buy tax credit - Page 2

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/

TEX · 02-18-2009, 06:51 PM

Quote:

Originally Posted by DaFace

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.

Which will also be funded with our tax dollars...

**Bugeater** · 02-18-2009, 07:09 PM

It sounds like a goddamned handout to me, why don't they just call it that?

**SAUTO** · 02-18-2009, 07:10 PM

so when are they gonna give people money that are doing what they're supposed to?

**DaFace** · 02-18-2009, 07:18 PM

Quote:

Originally Posted by JASONSAUTO

so when are they gonna give people money that are doing what they're supposed to?

I'm planning to buy a house in the next few months, have a decent down payment, and am spending far less than the bank wants me to. I probably wouldn't have bought if they hadn't given me free money, so I guess I'm doing what they had hoped.

**SAUTO** · 02-18-2009, 07:21 PM

Quote:

Originally Posted by DaFace

I'm planning to buy a house in the next few months, have a decent down payment, and am spending far less than the bank wants me to. I probably wouldn't have bought if they hadn't given me free money, so I guess I'm doing what they had hoped.

no i mean give money to people who are actually paying their mortgages and taxes. the people who would actually put the money to good use.(i'm more talking about the buyout bullshit)

**SAUTO** · 02-18-2009, 07:26 PM

if they just used the money to pay off people's mortgages that would sure help the economy IMO

**007** · 02-18-2009, 08:43 PM

Quote:

Originally Posted by DaFace

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.

New buyers can buy things they cannot afford too.

HMc · 02-18-2009, 08:52 PM

Currently the same deal here is 24,000 (AUD) until June 30th.

And for those complaining that it isnt fair because they didnt get it when they bought their house, this practice actually promotes property values so it isn't all bad - your house will increase in value.

**Iowanian** · 02-18-2009, 08:53 PM

When they help people buy new homes, some of those are going to be first time buyers etc...there is trickle down effect to.

My guess is they assume that this $8k, most often will be used to buy new lazy boys, beds, big screen TVs and dishes and coffee makers etc...

Of all the things in this bailout crap, this one offends me less.

**Bugeater** · 02-18-2009, 08:57 PM

Quote:

Originally Posted by HMc

Currently the same deal here is 24,000 (AUD) until June 30th.

And for those complaining that it isnt fair because they didnt get it when they bought their house, this practice actually promotes property values so it isn't all bad - your house will increase in value.

And the end result of that...higher property taxes. I can hardly contain my enthusiasm.

HMc · 02-18-2009, 09:00 PM

Quote:

Originally Posted by Iowanian

When they help people buy new homes, some of those are going to be first time buyers etc...there is trickle down effect to.

My guess is they assume that this $8k, most often will be used to buy new lazy boys, beds, big screen TVs and dishes and coffee makers etc...

Of all the things in this bailout crap, this one offends me less.

Yeah. Im not sure when they give you the cash over there, but here it's actually when you're doing the deal, and lenders will (I believe) allow you to include it in the deposit.

Which is good, means if you're spending 500,000 then you've only gotta have 26000 saved for a deposit rather than 24000.

It doesn't promote irresponsible OMG PEEPL ARE BUYING HOMEZ THEY CANT AFFORD because mostly, Australian law prevents such lending pracitces.

stlchiefs · 02-18-2009, 10:06 PM

If you plan to buy in 09 you can claim the credit on your 08 tax returns and get the 8k back this year. If you don't claim the credit until the 09 return you will have to wait for your money. The only problem you run into is if you claim it on your 08 and end up not buying in 09, then you'll have to file an amended return and pay some penalties, interest, etc.

You are correct that the 8k credit that passed with the newest stimulus bill does not require repayment if the homeowner stays in the home for 3 years. Whereas before the $7,500 was like a no interest loan repayable at the time of sale or in 15 years the $8k does not require repayment as long as you meet the 3 year requirement.

The wife and I were looking at buying before and had placed a June 30th deadline on our search, now we have all of 09 to find something and a better incentive.

I'm not a fan of how the government is handling the economic situation and bailing out everyone and their dog, but if there's money on the table for me for once, I'm not turning it down.

BWillie · 02-18-2009, 10:08 PM

Quote:

Originally Posted by stlchiefs

If you plan to buy in 09 you can claim the credit on your 08 tax returns and get the 8k back this year. If you don't claim the credit until the 09 return you will have to wait for your money. The only problem you run into is if you claim it on your 08 and end up not buying in 09, then you'll have to file an amended return and pay some penalties, interest, etc.

You are correct that the 8k credit that passed with the newest stimulus bill does not require repayment if the homeowner stays in the home for 3 years. Whereas before the $7,500 was like a no interest loan repayable at the time of sale or in 15 years the $8k does not require repayment as long as you meet the 3 year requirement.

The wife and I were looking at buying before and had placed a June 30th deadline on our search, now we have all of 09 to find something and a better incentive.

I'm not a fan of how the government is handling the economic situation and bailing out everyone and their dog, but if there's money on the table for me for once, I'm not turning it down.

Good call. It says it has to be your principal residence. So, obviously I assume if you don't live in it you can't use the credit. I'm planning on living in it and renting out a couple rooms. Would I still qualify? I just want to make sure they won't fuck me at the end of the year when I'm waiting for my 8 grand.

stlchiefs · 02-18-2009, 10:11 PM

Quote:

Originally Posted by BWillie007

Good call. It says it has to be your principal residents. So, obviously I assume if you don't live in it you can't use the credit. I'm planning on living in it and renting out a couple rooms. Would I still qualify? I just want to make sure they won't fuck me at the end of the year when I'm waiting for my 8 grand.

Claim it on your 08 return and you won't have to worry about waiting. If you've already filed 08 file an amendment and get it now. I think you'll be fine renting out a couple rooms if it's your principal residence still. It might be worth giving an accountant a quick call on though. Cash always makes things easier with a situation like that too as it's a bit harder to track if you catch my drift.

Implode · 02-18-2009, 10:46 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

In fairness ignorance isn't an excuse. And you admit now that you didn't know what you were getting into yet you still took the mortgage. Amazing. And here we are left to bail you people out. So the lesson is...If you're a dumba$$ you get free money, but if you know what you are doing and actually pay your mortgage you get stuck paying for the dumba$$es.

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, 07:09 PM	#17
Bugeater The Maintenance Guy Join Date: Sep 2005 Location: Renovated Bugeater Estate Casino cash: $3992680	It sounds like a goddamned handout to me, why don't they just call it that?
Posts: 70,546

02-18-2009, 07:10 PM	#18
SAUTO Shit Join Date: Jun 2008 Casino cash: $10039067	so when are they gonna give people money that are doing what they're supposed to?
Posts: 55,715

02-18-2009, 07:26 PM	#21
SAUTO Shit Join Date: Jun 2008 Casino cash: $10039067	if they just used the money to pay off people's mortgages that would sure help the economy IMO
Posts: 55,715

02-18-2009, 08:52 PM	#23
HMc from the very deep south. Join Date: Dec 2005 Location: Sydney, Australia. Casino cash: $9944900	Currently the same deal here is 24,000 (AUD) until June 30th. And for those complaining that it isnt fair because they didnt get it when they bought their house, this practice actually promotes property values so it isn't all bad - your house will increase in value.
Posts: 2,792

02-18-2009, 08:53 PM	#24
Iowanian Supporter Join Date: Aug 2000 Location: Utopia Casino cash: $1638454	When they help people buy new homes, some of those are going to be first time buyers etc...there is trickle down effect to. My guess is they assume that this $8k, most often will be used to buy new lazy boys, beds, big screen TVs and dishes and coffee makers etc... Of all the things in this bailout crap, this one offends me less.
Posts: 62,945

02-18-2009, 10:06 PM	#27
stlchiefs Veteran Join Date: Mar 2007 Location: St. Loser, MO Casino cash: $10005674	If you plan to buy in 09 you can claim the credit on your 08 tax returns and get the 8k back this year. If you don't claim the credit until the 09 return you will have to wait for your money. The only problem you run into is if you claim it on your 08 and end up not buying in 09, then you'll have to file an amended return and pay some penalties, interest, etc. You are correct that the 8k credit that passed with the newest stimulus bill does not require repayment if the homeowner stays in the home for 3 years. Whereas before the $7,500 was like a no interest loan repayable at the time of sale or in 15 years the $8k does not require repayment as long as you meet the 3 year requirement. The wife and I were looking at buying before and had placed a June 30th deadline on our search, now we have all of 09 to find something and a better incentive. I'm not a fan of how the government is handling the economic situation and bailing out everyone and their dog, but if there's money on the table for me for once, I'm not turning it down.
Posts: 4,160