For those looking for the latest on the housing tax credit, the WSJ has a good summary:
The highlights:
Q: If I buy a new home and live in it, do I also have to sell my old one in order to take advantage of the credit?
This is unclear. The law appears to allow repeat buyers to retain their old home, for which no tax credit was given, while claiming a credit for the new one. What is clear is that if you buy a new home using the credit, you must use it as your principal residence.
Q: What is the definition of “principal residence”?
If you own more than one home, your principal residence is usually the one where you spend most of your time. In determining residence the IRS may also consider where your family lives and your mailing address for bills and correspondence, among other factors.
Q: Can a principal residence be something besides a conventional house?
Yes. A principal residence may also be a condominium, co-op apartment, attached or semi-attached townhouse, or even—if it has eating, sleeping and toilet facilities—a boat, motor home or trailer. Manufactured homes qualify in some states.
Q: I need the credit refund to help make the down payment. What can I do?
There’s no rushing the IRS. But one option is to adjust your current withholding from your paychecks to reflect the fact that you will be taking the credit later. But be careful: If you don’t make the purchase, then you may owe interest and penalties. Consult a tax adviser.
Q: Is it possible to qualify for a credit if I am building a home on a lot I already own?
Yes, according to the National Association of Home Builders. The purchase date is usually considered to be the date of first occupancy, so you would need to move in before July 1, 2010.
For the land junkies (like me) some very interesting posts on what is going on with raw land…
http://www.zerohedge.com/article/coming-already-came-land-recession-now-depression-pt-i
http://www.zerohedge.com/article/coming-already-came-land-recession-now-depression-pt-ii
A very interesting education, indeed.
I recently bought an investment home in the last 6 months and did not qualify for the tax credit because not a pricipal residence.Would I still be a first time buyer for a principal residence and be able to claim the credit?Or simply because I bought a house in last 3 years I am not a first time buyer?
I just had a good laugh with my sister who qualified for the $8,000 credit a few months ago. When she received the check it was for $8,070. Because she took two months to claim the money the government wanted to make sure she was paid interest on the money. She said she could only laugh. Who pays interest on a free gift? Our government. 🙂
…’Who pays interest on a free gift? Our government.’
Who doesn’t pay interest on a free gift? State of California 😀
So why would they offer a tax credit to move-up buyers? Does this temporarily raise the value of houses? I think not, as it would flood the market with supply. But it would spur volume. So hmmmm…. a tax credit that spurs volume, who could this benefit? Perhaps groups like NAR, that don’t really give two shits about the economy so long as they line their pockets?
propertysearch-Technically, the eight grand could be attached to the 2008 tax year via an amended return (even though the purchase was actually in 2009). If you file an amended return and get a refund, you are (by law) eligible for interest on the refund.
It is kind of weird, especially since a lot of people who got the eight grand paid less than that in income taxes, but that’s how Congress wrote the law.
“I just had a good laugh with my sister who qualified for the $8,000 credit a few months ago. When she received the check it was for $8,070.”
My check was for $8,147.
Way better interest rate than any of my interest bearing accounts ever since my 5.6% CD with e-lone expired two months ago.
I thank all the tax payers for equipping my kitchen, living room and dinning room.
” thank all the tax payers for equipping my kitchen, living room and dinning room.”
So when can I come over for coffee : )
I have a question of eligibility regarding the $6,500 “move up” home buyer tax credit.
I closed on my home on 12/31/03 and it is our primary residence. Last year I decided to sell my house when I found out a Registered Sex Offender was located next door. As a single mother of a nine year old I temporarily moved in with friend in July of 2008. This also gave me an opportunity to renovate the house in order to sell it. My mail was also forwarded to my friends address during this time.
We moved back to the house in June of 2009 when the work was completed and learned that the Sex Offender was sent back to prison. We are presently residing there full time now.
I did not rent the house and continued to pay the mortgage, utilities and taxes on the property during the entire time. I also spent most weekends and various other times at the house doing the renovations.
Will this time I spent at my friends house exclude me from the $6,500 tax credit? As a single parent with a low income this tax credit would be very important to me.
Thank you,
I just closed on my home on October 16, 2009. Just 3 weeks short of the Novemeber 6th date. Is there any ammedments to the tax credit out there that would make me eligible for $6500 tax credit??
OMG grammar!! ammendments…November and is should be are!!!!!