First Time Home Buyer Tax Credit

There has been a lot of talk (and confusion) about the economic stimulus bill and what it means to home buyers. Who qualifies? What year can I claim the credit? How much of a refund would I get back? What are the criteria to receive the credit? So I'm going to attempt to answer the most common questions about the bill. Keep in mind, I am NOT a tax professional or accountant and always recommend when it comes to your taxes to seek the advice of an accredited tax professional.

That being said, the bill states that first time home buyers can claim a tax credit worth $8,000 OR 10% of the home's value, whichever amount is less. So, if you bought a condominium for $65,000, your tax credit under the bill would be $6,500, not $8,000.

Qualifying

In order to qualify for the credit, the home purchase must be made between January 1st and November 30th of 2009 (so if you buy a home on December 1, 2009 you are not eligible). In addition, there are income restrictions as well. To qualify, a single person must make less than $75,000 a year. Married couples must make under $150,000 a year. However, higher income buyers may receive a partial credit. You must also live in the house purchased for at least three years or you will be required to pay back the credit. The property being purchased can not be owned by a close relative like a parent, grandparent or one of your children. The definition in bill for a first time home buyer is anyone that has not owned a home in the last three years.

Tax Filing

The credit can be claimed on your 2008 or 2009 income taxes. Now as I said you can claim the credit on your 2008 tax filing. If you have already filed them, you can file an amended return to claim the credit if you wish to do so. Based on the feeback we've been getting, the process takes about 12 weeks. Another great thing about the credit it that it is fully refundable, so even if your total tax bill (refund) is less than $8,000 (and you qualify for that amount of a credit), you would still receive the full $8,000 back plus the amount you had overpaid.

For example, John's taxes showed that he had paid $5,000 in taxes over the year. He filed his return and he actually only owed $3,000 in taxes. Normally he would have received a refund of $2,000. But under this bill, he would receive the full $10,000 instead! To claim the credit on your taxes is just a matter of filling out the form, without any additional paperwork involved.

This is a simplified breakdown of the economic stimulus bill. I highly recommend consulting a professional tax service regarding your taxes. You can download the tax form here: http://www.irs.gov/pub/irs-pdf/f5405.pdf

Thank you for reading our real estate blog and feel free to contact us for all of your Las Vegas NV real estate needs.  

Source: CNNMoney.com

Comments

First Time Home Buyer Tax Credit

if you get that money.. where did that money come from? Is it the money from the Government or was it the money you put down for tax during the first year of owning your home?

8 months, but finally getting closure

filed for the existing homeowners $6500 credit last July. Requested a tax advocate after the new year. Finally getting results. Check will be mailed this friday.

Total process took 8 months. Only had to send in additional info that the advocate suggested to help the process, did not have to resend docs I had already submitted. Advocate did the job well in this case.

Still, took 8 months. .......

Be patient, be diligent...... but DON'T give up if you have this credit due you....

They gave me the credit now say I OWE it back.

I closed on my home on October 21, 2009. I filed for the credit with my 2009 taxes and sent in the HUD settlement statement and all other documentation with my taxes. We received our money about 10 weeks later. Then in August of 2010 I get a letter in the mail saying they wanted proof of residency and I had 30 days to comply. Two weeks after I received the notice my 23 year old oldest son died in a work related accident. I was so out of it I forgot to send the information they needed. When I remembered a month later they said they appreciated it and they would let me know the outcome. In December of 2010 I get another letter from them stating we OWE the credit back because we refinanced our house on November 5, 2010. We did not finance our house in the first place nor did we refinance it in November of 2010. We DID however take out a government loan to have a well dug because our well ran dry and we lived without running water for 9 months (this was during the time we lost our son) also. The company called Southeastern Rural Community Assistance Project is the government agency who helped us with the well loan. Its for low income families who have no means of getting water without help. We dont have city or county water where we live. They used our house as COLLATERAL to repay the loan which by the way is very inexpensive. We financed 5500.00 for 20 years at 1% interest our payments are only 26.00 per month. The examiner that looked over our stuff said we REfinanced our house for $5500.00. How retarded are these people. It clearly states it was for the digging of a well. How do you refinance an 89000.00 house that was paid for in cash (i used my workers comp settlement to pay for my house) for $5500.00? I have been trying to fax the information the other examiner asked me to submit for one week and the fax number on our tax paper is always BUSY. So I'm forced to send it certified mail. Which I really can't afford, plus this is going to hold up any refund we receive this year which we desperately need to help pay for my son's funeral expenses and get him a headstone. Also his daughter was born 3 weeks after he died and the hospital would not let his girlfriend put him as the father on the birth certificate but did let her give the baby his last name (they planned on marrying but he died before they could afford it). Now Social Security will not pay benefits to my granddaughter without a DNA test which none of us can afford. This system is so screwed it almost makes me want to move to another country and to hell with this one. Any advice? My son died plumbing a home as a subcontractor and was electrocuted. OSHA did not investigate his death because he was self employed and therefore it was out of their jurisdiction. No one has investigated his death. He was simply under the house replacing old pipes with new ones and nobody can tell us how he died but we got stuck with all the bills. I feel so guilty for saying that but we have had a very hard time financially the past couple of years. The only good thing that happened was I used my entire settlement to purchase our home otherwise we would be out on the street for real. It would hurt my son so bad to know that his death has caused me more financial problems. He was the best kid ever. I miss him so much and having to deal with the IRS and Social Security and all this other shit makes it even worse. I think I need help or I'm gonna do something stupid just to get away from all this crap. The world is not fair. If he had been working for a company everything would have been investigated and paid for. Everyone says I should sue the homeowners insurance because its alleged that someone ran an electric line down the hole where the pipe my son was replacing was. Point is if it had been anybody else his death would have been investigated. But because he was my son it wasn't. If it wasn't for bad luck I would have no luck and thats the gods honest truth. You would not believe what I have been through the last ten years. My mom and dad honestly cant believe I am still alive to tell about it. But truth is its all killing me alot quicker than they know.

Carrie's Hardships

Carrie, first I want to say how sorry I am for you and the terrible hardships you have had to endure. You wonder how you make it through each day with all the sadness and interference you have to fend off. But, please, don't give up. You have to keep pushing yourself for the sake of your son and your well being. Government agenices and insurance companies alike have one goal and that is to break you so you will give up. Life is about living, not quitting. Keep fighting the battle and you will find that you have finally won the war, and then you can quietly and peacefully grieve for your loss. May God bless you in His own way and in His own time.

Details

What did they specifically ask for you to provide when you were asked to prove your residency?

HOME BUYER CREDIT DELAYS

I posted here a couple of times regarding my situation but have gone on to read many of these stories.
I think maybe several things come into play here. First, we all can assume that the program was initiated but unfunded as that is how our defunct government works. Secondly, I'm reading a lot of people purchased a home and then "ammended" that year or the prior years taxes in hopes of a "fast refund". That may well be the hold up because the IRS first has to confirm your ammended taxes prior to the Home Buyers Credit even being acknowledged. You have to realize the caliber of people you are dealing with. These are all the misfits who can't find employment with private firms so they end up working in the house of misfits!
Some other issues might well be the fraud that occurred originally sparking a response from Congress or the White House demanding more diligence on the part of the IRS.
One issue that may come into play is that rumor has it the FEDS are amassing a huge profiling archive on every American citizen.......right down to the last time you took a CHIT! With that in mind and given what the tax documents required as proof to be sent with your paper return, I would place my bet on a information gathering scam! Hopefully those commenting here did file a PAPER RETURN because the IRS will not accept or acknowledge the credit if done electronically!!!!! They want those contract and closing documents along with proof of residency!!!
It might be a senario where they were hoping folks would get so fustrated they would go out and hire attorneys so the transfer of money stated within the "circle" if you know what I mean. The attorneys would bill you your credit plus for services rendered keeping the money in the ELITE CIRCLE! Given the fact attornies pretty much own Congress, don't think for one minute they aren't kaniving and looking out for number one!
We can all speculate but I'm sure they won't divulge their "reasons" even though they are pretty obvious!!
Just have faith and stay on top of it until you get what you rightfully are entitled to!!!
Just remember, the government works for the ELITE and not Main St!!! Don't give up or walk away because of fustration.........that is exactly what they want you to do so they don't have to allocate the funds that don't exist. Put these parasites front stage and let them be persecuted for the corrupt people they truly are!!!!!

My son has lived in this

My son has lived in this house all of his life. His father passed away in 2005 he taken a loan out on the house to his parents and so the house was put in their name. My son had to pay rent to his grandparents untill he purchased the house. Which he purchased the home in 2010 now they tell him that he doesn't that he can't get the first homeowners tax break.

because people cheat

Some people set up a false loan to try to sneak the credit. 8k is a lot of money and lots of people will try many things to get that. I bought my house with my grandma as the lender. I got my credit right away. I bought my house legit and looked through all the rules before i bought. I put the money towards repairs and a truck to help with the repairs. Im very happy on my farm!

That's because the credit

That's because the credit states that the purchase can not be from a family member. If he bought the home from his Grand Parents he would not be eligible

Yeah, I agree. Your story

Yeah, I agree. Your story made no sense.......I can see why you are still waiting.....

Your story made no sense

Your story made no sense whatsoever.

Won't except 2010 taxes due to credit

We purchased our house in march 2009, but put the credit on our 2008 tax return. This was excepted and we got the 8000 credit. I go to file my 2010 taxes and they will not except them saying I owe the money back. I have talked to numerous IRS agents and I get a different story everytime. I've sent my deed, and my hud forms to them. I am so mad. The IRS owes us a 5000 dollar return this year and I need that money. I cannot believe how horrible our government is. It's a complete joke.

I totally agree . I'm very angry about the 2008 tax credit.

We bought our home 2008, did our taxes 2009 we went to liberty. We were told we were intittled to it as first time homeowner ,for a 7,500 tax credit.
nothing was ever mentioned about a loan ,we were told a tax credit.
on Liberty sheet and tax sheet both said credit.
We had no idea about this being a load untill we recieved a notice this year from the IRS. We are furious we spend the credit fixing our home.
We went to a tax law office and paid $600.00 fr them to send a letter to liberty who decieved us. They sent the letter to liberty response from Liberty they did nothing wrong. then told by our law office after this even though I have my papers
& their is nothing on this saying it is a loan. It's our word against theirs.
We were told by the lawers office we could bring this to court but it
will probably cost us about 3,000 in lawers fee with no guarantee.
I really wish their we enough people complaining about the 2008 tax credit.
I don't know where to go from here. my husbands retired. & i still have sometime to go. But a 15 year loan we would have never taken the tax credit.

I am having the SAME EXACT

I am having the SAME EXACT problem with my 2010 Tax return too. My husband & I recieved the 7500.00 "loan" when we filed our 2008 taxes... This year we filed on Feb.03 , we were told our return wouldn't be accepted by the IRS until Feb.15. ~ I was told 8-15 days after the 15th that my RETURN would be deposited into my bank acct. It never was. I've been talking with IRS reps & The Tax Advocate about this problem & the delay. I was told this morning that ALL returns like ours, that involve the 2008 1st TIME BUYER'S HOME LOAN was being held because "CONGRESS" didn't have a way yet to recieve these payments that we're "TRYING" to make. I was also told by the Tax Advocate thismorning that all I could do was wait until Congress figures out a way to handle it. That & I couldn't recieve "Emergency Economical Funds" (a portion of ur tax return money right away to catch up house payments &/or electricity bills) because of the HOLD that had been places beacause of the loan . I think this is plum stupid.

what a joke!

Well, bought our house inmay2010, sent all paper work in june 2010. November 9, we finally get letter saying they need more information, I faxed everything that day. December we get letter saying they revived our paper work and will hear from them in 30 days. Jan we get same letter saying they need more time will hear from them march 4. We called our tax people in jan they called them for us they were told that we will have our money march 1. Today day before our money supost to be here, we find out now it will be march 7!!! What a mess! I doubt it will come then, they will need 30 more days. Good luck to everyone and know you aren't alone in your struggles.

have black mold do i have to pay back?

i received the homebuyers credit last year and have now realized that we have black mold. do i still have to pay back this money or is their a process to go through in order to be able to move and not have to pay it back? PLEASE HELP.

Smooth Sailing for Me

From my own personal experience, overdo the paper work! It makes sense and everything will go through smoothly. I also highlighted the important part of each document that they look at, tagged and color coated each type of document that they would need or paper clipped them if there were several of the same. Yeah, my file alone was about 30 pages long, but it got us in the clear easily without any hassle. Stay organized and help the people at the IRS out by highlighting areas that they will need to view. It will get your documents processed faster and it won't cause any delays. I submitted my documents at the end of December. We DID forget 1 thing, which was really important, the 1040x docs!!! BUT, we got that sent in right away and I called today to check on everything. Check is being mailed out to us on Friday.

It helps to call the IRS after you sent out your documents. I called them 2 weeks after I mailed the first packet out to them, and they let me know all was received and reviewed, that I was getting a letter and the only document missing was the 1040x. Be as friendly as possible to the people on the end of the line. These people have to deal with jerks daily, and if you are kind to them, they are kind back. I've had a good experience with this process and I had to make 2 phone calls to check on things.

If documents are missing, or your try to send them the minimum amount of documents, your process will NOT go very smoothly. Be cognitive of this!

Any advice will help

My ex and I bought a home together back in Aug. of 09. We each amended our return and each got $4000 ($8k total). Now, he has moved out and we are afraid that the IRS will find out that this home is not his primary residency anymore and they will ask him to pay back the $4k. He thinks he is going to file his 2010 tax returns using this home's address instead of his new apartment and just hope they don't figure it out.....so my question is.....how much does the IRS check into where you live? He never changed his address at work so his w2s still show this home address, but he did change his address on this license and at the Post Office. Anyone know how much they look into these things? THANK YOU!!

I hate to tell you this BUT

I hate to tell you this BUT YOU are the one still in the house according to the IRS.GOV site it is not HIM that will be screwed but YOU you will now be required to pay all of the credit back to them

Denied...

I filed the first week in April 2010, we had purchased a modular home on March 8, 2010 and closed on a construction loan on May 11, 2010. They are telling me that since I closed after May 1, I was ineligible but the extension took it to the end of Sept. Do they not know their own rules? Now since it took them almost a year to look at the countless documents I had to continually send them, they are charging me interest and penalties on the money that I would have owed without the credit. How can they do this when it was their fault it took this long in the first place. I'm fighting till the end...

Home buyer credit

A construction loan is NOT a home closing. It is simply a loan that gives you X amount of dollars as construction progresses. The bank inspects each phase of construction from clearing the land and doing sub grade, foundation work, septic system and well, structures shell, structure interior, roof, windows and doors, etc. They don't give the money until you can show the progress! You still need to close on the final mortgage once the home has been built and an occupancy permit issued. Many builders build their spec homes with construction loans hoping to sell prior to a formal final closing which cost them significant sums of money from their profit margin.

denied

The file time was extended untill September but you still had to close by April to qualify.

fthb...

We rented the home we purchased for three years before we purchased it and this is causing HUGE issues...The IRS does not communicate that they need us to prove this until many months and letters later. We are so frustrated. I'll let ya'll know how and when this is resolved. going through hoops

Same problem I've had. My

Same problem I've had. My house almost went into forclosure. But I just got a letter today that I will be getting the check in 6-8 weeks. I filed for it June 2nd 2010.

Bankrupcy and the 2008 home buyers credit

I got the 2008 first time home buyers credit but in 2010 I had to file for bankrupcy, the court included the credit I got because the judge said it was a interest free loan and the money was discharged on the papers. The IRS is saying they have nothing on my file that is saying I don't have to pay back the loan and when I tell them the notice was sent to them they keep referring to it as tax money and you can't file on tax money. This money was from the congress and the IRS is only the collector. How do I get them to relieve me of this payment? Or do I really have to now pay it back?

We just sent ours in when we

We just sent ours in when we filed our tax return. The lady said expect at least 12 weeks for the money. What I would like to know is it just the homebuyer credit that is being held up, or the WHOLE income tax return? Kinda counting on the money over here!

answer

i am having the same problem with the irs. I took advantage of the 7500.00 tax loan they gave in 08. i filed my tax return on feb 14th 2011. like they said too. was given a date of march 8th for deposit. on march 2nd, they said there was a problem with the 5405 form for the payback an kicked out for review. I have called the irs numorus time's an recieved different answer's everytime. i was told from a desmail point being off (which is crap considering everthing is rounded too the nearest dollar to the computer are so old they werent able too handle the new patches') which is crap...i mean what do they pay there techs for if they cant fix a patch in the system...from what the irs has told me that if you are subject too the payback. it will be a additional 6 to 8 weeks after the given expect date of the return...which is crap becuase like every other american we need the money too keep a roof over our heads... these irs agents that answer the phone are dickweeds that dont take the time too explain, are very rude, an will hang up on you if you start askin question's they cant answer or cant understand...my advice too you is call the tax advocate an explain the problem with them...i called an was handle with respect an speed. All i can say is the irs has there heads up there ass's an dont know how too do a job they are getting paid too do.....if this was any other company or person an we ran a business this way would be out of busniess an if there was a judgement against me an other person they would not wait too take your house your money or add late fee's or interest on the money owed too them so why cant we fine them..its a joke all the way around. .....seeing how the irs wasnt supposed too be the answer for the goverment too make money...if you read your history this was a tempary fix too a problem back in the 30's too help with the depression, but seein how much money they could screw out of the american people they kept it going .

My belief is if your going too get on the tv an raido an newspaper an tell the american people that everthing is running smoothly, then it had better be running smoothly, but i guess this is the goverment, they will piss on your leg an tell you its raining, an the worst part is that there is no way too make anyone accountable for there inability too do there job.. if this was a factory or office we would have been shown the door along time ago..but i guess that the benfit of a goverment job...you dont have too be smart or helpful, just lazy an rude an you too can have a job with the IRS. Sorry about the rant but this has really pissed me off! screw ohbama an all that delayed the taxs this year......what dec. come too soon for the goverment an there new tax law's(really dont understand why they waited so long too put into place) .or do they do this too just let the money sit too collect interest off money thats not even thee's too begin with!

can" fight the government!?!

my wife and I have the same problem! We filed on Feb 5th, but because of Congress and Obama dragging their feet on the extension of the "Bush Tax Cuts", the return wasn't EVEN accepted untill the 15th of Feb. We received our state refund 2 weeks later...THANK GOD! I used the IRS website to check our return and was told to contact them if I didn't receive the refund @ the end of three weeks from the date of receipt (mar.1st). We didn't get it then either! We gave them another week and finnally called them today. My wife was told it will be ANOTHER 31 days because of a "computer glitch". This is B.S!@%t!!!! We now owe the morgage company 2 house payments, $3,000 in Dr bills for a surgery for my son last year, and about $600 in credit card debt... which is my own fault... but, that isn't the point.... it's our money, and the government has barrowed it long enough!!!

Home Buyers Credit

I purchased a home on April 22, 2010 and closed June 1, 2010. I filed my income taxes January 29, 2011 using TaxAct. Upon completion and a $13.95 fee for what was to be a FREE TAX RETURN (federal only) these houligans inform me my return has to be a "paper return" and that I could not file electronically.
Since I was at the very end of the return and did not feel like doing it over I went ahead and paid the $13.95 fee only to learn then that the government had put a hold on these Home Buyers Credit refunds until at least February 16, 2011. I would suspect that this was political manipulation to start with, looking for votes but no money to fund the program.
I went online to IRS.gov for 3-4 weeks being told they couldn't find my return. Finally, March 2, 2011 the site informs me my return was processed and that a direct deposit would be made by March 29,2011. Now the website is saying that further information is required and that paperwork was sent out. I have not received any paperwork so who knows...........it's the government where the right hand doesn't know what the left hand is doing! It's a wait and see senario.........ZZZZZZZZZZZZZ!
General tax returns are running at normal as my daughter had her refund in three weeks filing electronically. It's the Home Buyer Credit thats holding up the works while the government scuries to find the MONEY to pay for the program!!!

I sent my amended tax back

I sent my amended tax back for the home buyers credit in november 2010. I just called the irs today 3-3-2011 and they told me that my paper work is with the examiner being process. I should hear something with in a few weeks.

Same thing Here!

Well we filied for our FTHBC in Aug and they sent us a letter in jan. saying we didnt provide all the information they needed which was my husbands driver licence with the new address and so we did right then and there with an examiner on the phone. She said we would get a responce in 30 days which came and went! We still to this day have been getting letters saying what date we would recieve a responce by..which the last one we got was for 3-27. So my husband called today and the same examiner said she's behind and that those letters are "COMPUTER GENERATED" she needs another 30 days then if she gets to it by then, it would be about 16 weeks for them to cut a check! So waiting for another 2 months i guess! I want to know ..If they are that far behind wheres the extra help and over-time?

tax credit

Hi,

We filed in March of 2010, first my boyfriend filed his income tax and then had to go back and do an amendment for the first time homebuyers tax credit. He got the refund for his regular taxes, as usual, but, and a GREAT BIG BUT !!!!! we went thru so much baloney getting the homebuyers back. We have probably about 10 letters only the date changed, stating they needed this and that and the other thing, I could not believe it!! We were told also we should get it in about 8 to 12 weeks. NOT!!!!! Finally we went to our local IRS office after they wanted more stuff and I took the whole file box with us and said "have at it" !!!! The man took what they needed copied it and stamped everything and mailed it out that was October 2010. After more calls to the IRS and two more letters, we called a couple of weeks ago and FINALLY they said our case was closed the end of January 2011, and we should have a check with interest by the 1st or 2nd of March, we got it on February 28th, 10 days from a year ago that we filed for it. I wish everybody good luck, and hope you all don't have to go thru what we did!!! Take your things to the local IRS office it may go faster

I sent in my papers to

I sent in my papers to federal about 4 weeks ago, and I got my federal refund back before my FTHBC so I hope I will get my $8000 within the 12 weeks from now.

I got my FTHBC, now the IRS

I got my FTHBC, now the IRS is saying I have to repay it. I bought my house in February 2009. I filed my 2008 returns with the FTHBC, which the IRS said I could do. Didn't need any special forms or anything showing when I bought my house. In November 2010, I get this letter from the IRS saying that I need to start paying the credit back. I took it and all my documentaion to the Local IRS. The IRS Lady said that I SHOULDN'T have to repay it. She made copies of all my documentation that proved I bought my house in 2009 and sent them in with her own recommendation that I didn't need to repay it. When I got ready to file my taxes for 2010, the IRS rejected my E-FILE saying that I still owe them a payment for the FTHBC. On my way back to the Local IRS. Anybody else having this problem. I read that over 70,000 people are having the same problem.

I to got a letter stating

I to got a letter stating that i had to start paying back on my fthbc this year. i filed at h&r block on feb 10th and i brought the paper with me used to getting crapped on by the government. I had the money taken out of this years taxes and because i am paying back the credit they are having delays and i will not be getting my taxes for another month they say the end of april probably in the mean time i ran out of fuel for heat and my hot water take died and i am running out of food. i thought america was supposed to be the best government!

I too received this same

I too received this same letter. Over the past 4 months I have sent them all of the information they requested to amend this and to my knowledge it is still not resolved. I have spoken to at least 4 different people who all gave me different advice. The last gentleman I spoke to started the conversation with "I knew I should have taken my break"!!! He seemed less than confident that an e-file will go through, even once it is corrected in their "system". I hate to file a paper return but that is my only option at this point. They were not given any specific information on how to respond to this issue, according to the gentleman (I use that term loosly) spoke with they are to respond, "it's fine, don't worry about it". Well that is easier said than done. So, I will be mailing my return out today and hoping for the best. Good luck to you as well.

FTHBC

I received the same letter. I bought my home in 2009 and amended my 2008 return to claim credit. After hours on the phone with IRS to find a resolution, I faxed them proof of my home purchase and was told it would take 2-3 weeks for my file to be updated. It's been 3 weeks and my return is still being rejected when i try to e-file. I'm considering just paper filing and hoping for the best.

I've been trying to get the

I've been trying to get the right fax number to fax some more proof for days now, which number did you use?

By the way I filed for the credit back in march of 2010 and have yet to receive it.

I all so bought my house

I all so bought my house Feb. 2009, but claimed the FTHB credit on my 2008 return. I received notice that I had to start repaying the loan. I was told that if the IRS rejects my e-file I would need to send it in by mail. I would need to include a letter explaining I purschased the home in 2009 and include copies of the HUD paper work.

First Time Home Buyer Credit

I purchased a home in April, 2010 with my father. The loan is in his name and both our names are on the deed. My name is not on the HUD-1 Form because the loan is in his name. He does not qualify for the FTHBC, however, I do. I am living in the home & making all the payments. This is my primary address, he only comes to stay with us during summer months. My question is, what documentation do I send in with the HUD-1 that would show I am the owner/purchaser of the home. Do I include the deed, my driver's license, and other information showing proof of residency. I've been reading this forum and becoming somewhat concerned. Prior to buying the home we were told there would not be a problem as long as I am listed on the deed. Now I am beginning to wonder. Thanks for any advice- Lisa

Since your name is not on

Since your name is not on the loan you are NOT eligable for the credit. Since the loan is in your fathers name, that is who the credit would go if he qualifies. Since he does not qualify as you say, then there will no tax credit issued to you. Being on the Deed/Title has no bearing for the tax credit.

Answer to your comments

The deed doesn't help you in any way because according to the FTHBC regulation or policies. The two of you must be on the load application as well as the purchase agreement when you sign it with the seller. Cause the purchase agreement will show all parties name and final approval by the seller with date posted. What I meant by this is that when you bought the house with your dad, you must sign the purchase agreement with him too in order to qualify for the FTHBC. If only his signature is on the purchase agreement then the title will also be in his name because your name wasn't in the original purchase agreement documents. Same as goes with the HUD-1.

Sound to me like you were asking your father's to help purchasing the home for you but he will not be the one to lived there. In this case, you will make the payment but the home is still his. And he got a good chance of getting that FTHBC then you.

Please help!!!!

Here is the situation I've been in, and if anyone can help, I'd really appreciate it.

- wanted to take advantage of the 1st time home buyer's credit
- IRS states that parents can help their son or daughter purchase a home.
- bought a condo in April 2009.
- i couldn't qualify for a low APR loan so my parents took out the loan and
paid cash.
- they immediately transferred the title to my name.
- at that time, the IRS did not say that my name needed to be on the HUD.
- when i filed my 2009 taxes, everywhere i turned, they all told me i can't
do anything
since my name wasn't on the closing statement (HUD).
appearantly, the IRS was trying to eliminate fraud, so they implemented this new
HUD requirement.
- with everyone telling me that i'm out of luck, i gave up.

It just sucks cause my parents and I tried to follow the rules that were in place at the time. We had no intention to try to cheat the IRS. I've been living happily in my condo since April 2009, but WITHOUT the $8000 credit. All because the IRS changed their rules regarding the HUD statment, and my name is not on it.

Again if anyone has any advice, please help me out. I'm sure I can't be the only one in this situation.

Thank you!

home buyer tax credit

It is very clear on the website you can not get the credit for the FHBC if you got the house from a family member BUT a sibling :( sorry...go to Irs.gov and look it all up

First time home buyer credit (parents help buy home)

Firstly: your name must be on the hud form! That is thier rule and there is no way around this. Secondly: your parents would have had to set up a mortgage via a promissory note through the legal system thereby acknowledging that you have entered into a legally binding mortgage with them. Thirdly: the irs requires you to pay a minimum of 4.4 percent interest on said mortgage in order for it to be a qualifying purchase for the first time home buyer project. I know all of this because my mom helped me purchase my home in 2010 after my loan fell through 2 days before closing.....I finally recieved the 8k credit after waiting 6 months! I am sorry dear, but you will not qualify unless you met these requirements=(

Thank you very much for your

Thank you very much for your reply and information!

First time home buyer tax credit for 2011

Hi, my name is Krishna Chapagain. I bought a house in Jan 19, 2011 and I am active duty military. Do i still get first time home buyer tax credit? If i do get, am I still going to get this year.

Thank you

So, this is what happened...

So, this is what happened... we bought a home in Aug. my husband is been to 2 deployments back to back so we qualify for the extension. Did all the leg work and paperwork, got our taxes amended and submitted everything to the IRS in Sept. Pls tell me why when I call the IRS to inquire they give me the run around, then tell me they sent me a denial letter, but I never got one and when I ask for them to resend it they said... ooopppsss we didn't keep one on file. So now we have no idea what was wrong w/ the filing, I will have to redo everything and submit it again, oh yeah, submit it again, because they DIDNT KEEP OUR FILING PAPERWORK.

Glad I vented...

fthbc

conact your tax adovate since they didn't send you a letter telling you that were denied they will help you with it.. thats how we got help we had a different problem and have been waiting almost two years to get our 8000 but we are in appeals right now. so talk to a tax adovate in your area and see if they can help

My name is Derek Im from Hot

My name is Derek
Im from Hot springs ,Ar
I Purchase a house over a year ago, and in march of 2009 I filed for the home buyer tax credit. Didnt hear anything back from them for months, So i called them, and then they started to respond, and they keep asking me to send more info to them over and over, proof of residence so I sent them a copy of all my bills that had the address that I had purchase. next 40 days later they asked for me to send a copy of my drivers lisence that had the address on it, 35 days later they ask for a payment statement and proof of house payments, then they sent me a letter saying that they will review the info that I have sent in and I should get a response within 30 days, but before 30 days came they are requesting that I send more info. What the fuck do I look like. They are treating my like im trying to scam them out of money, They are the ones that told me it ok to go buy a house, We are going to make it all better with this tax credit as an insentivve. Im at the point I dont know what to do. Some woman at the irs names Miss S. king is playing games I feel. I dont understand why they cant just asking for everything they need at one time. It seems like they are making it hard

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