Comments on: First Time Homebuyer Tax Credit: When a credit isn’t a credit but it’s still free money http://totalcandor.com/blog/2008/09/first-time-homebuyer-tax-credit-when-a-credit-isnt-a-credit-but-its-still-free-money/ A Conversation About Income, Wealth, and the Steps in Between Sun, 25 Dec 2011 17:20:47 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Michael http://totalcandor.com/blog/2008/09/first-time-homebuyer-tax-credit-when-a-credit-isnt-a-credit-but-its-still-free-money/comment-page-4/#comment-260274 Michael Sun, 06 Mar 2011 20:18:36 +0000 http://totalcandor.com/blog/?p=251#comment-260274 @JR: Ask her nicely to pay back the whole thing since she solely benefited from it? Sorry, but this is something you (or your accountant or attorney) probably should have worked into your separation/divorce agreement. @JR: Ask her nicely to pay back the whole thing since she solely benefited from it? Sorry, but this is something you (or your accountant or attorney) probably should have worked into your separation/divorce agreement.

]]> By: JR http://totalcandor.com/blog/2008/09/first-time-homebuyer-tax-credit-when-a-credit-isnt-a-credit-but-its-still-free-money/comment-page-4/#comment-259901 JR Fri, 04 Mar 2011 23:08:56 +0000 http://totalcandor.com/blog/?p=251#comment-259901 My Ex-wife and I purchased a home and recieved the 2008 tax credit. The money used to buy the home was left to her by her grandmother. The house was put in HER name only. And she used the credit to ofset any taxes she would have had to pay for the money. When we divorced less then a year later she kept the house and I signed off any right or claims I had to the house. I figured that included the repayment of the tax credit. I have just been told that I have to start repaying the loan. Is there anything I can do to transfer the tax liablity to her since I lived in the home for less then 6 months and she still owns and lives in it with her new spouse? My Ex-wife and I purchased a home and recieved the 2008 tax credit. The money used to buy the home was left to her by her grandmother. The house was put in HER name only. And she used the credit to ofset any taxes she would have had to pay for the money. When we divorced less then a year later she kept the house and I signed off any right or claims I had to the house. I figured that included the repayment of the tax credit. I have just been told that I have to start repaying the loan. Is there anything I can do to transfer the tax liablity to her since I lived in the home for less then 6 months and she still owns and lives in it with her new spouse?

]]> By: Michael http://totalcandor.com/blog/2008/09/first-time-homebuyer-tax-credit-when-a-credit-isnt-a-credit-but-its-still-free-money/comment-page-4/#comment-257241 Michael Sat, 12 Feb 2011 15:41:04 +0000 http://totalcandor.com/blog/?p=251#comment-257241 @Tanaya: The relevant date is the date the transaction closed, or 2009. In your case, you should absolutely amend to get the extra $500 because you won't have to pay any of it back. In short, the $7,500 (2008) credit must be paid back; the $8,000 (2009) does not. So go get the money. @Tanaya: The relevant date is the date the transaction closed, or 2009. In your case, you should absolutely amend to get the extra $500 because you won’t have to pay any of it back. In short, the $7,500 (2008) credit must be paid back; the $8,000 (2009) does not. So go get the money.

]]> By: Tanaya http://totalcandor.com/blog/2008/09/first-time-homebuyer-tax-credit-when-a-credit-isnt-a-credit-but-its-still-free-money/comment-page-4/#comment-256730 Tanaya Thu, 10 Feb 2011 06:47:41 +0000 http://totalcandor.com/blog/?p=251#comment-256730 My husband & I purchased our house in 08 or 09? We entered escrow in November 2008 & didn't close until 2/6/09. For the tax credit purpose, what year would be the purchase year? We filed our 2008 taxes claiming the 2/6/09 purchase & received $7500. We received the 1040X in the mail stating we were eligible for $500 more than we received initially, however I'm still not sure about repayment. I don't want to amend our return if I'll be repaying the money later. Using HR Block tax software & Turbo Tax we needed to begin repayment this year, however as I read on the IRS site we wouldn't need to repay. This is so confusing to us. Any help is appreciated! Thanks :) My husband & I purchased our house in 08 or 09? We entered escrow in November 2008 & didn’t close until 2/6/09. For the tax credit purpose, what year would be the purchase year?

We filed our 2008 taxes claiming the 2/6/09 purchase & received $7500. We received the 1040X in the mail stating we were eligible for $500 more than we received initially, however I’m still not sure about repayment. I don’t want to amend our return if I’ll be repaying the money later. Using HR Block tax software & Turbo Tax we needed to begin repayment this year, however as I read on the IRS site we wouldn’t need to repay. This is so confusing to us. Any help is appreciated! Thanks :)

]]> By: Michael http://totalcandor.com/blog/2008/09/first-time-homebuyer-tax-credit-when-a-credit-isnt-a-credit-but-its-still-free-money/comment-page-4/#comment-251134 Michael Sun, 23 Jan 2011 14:46:32 +0000 http://totalcandor.com/blog/?p=251#comment-251134 @Linda: Sorry for your frustrating experience. The law has always excluded married couples where one spouse previously owned a home. As such, you never qualified for the first time home buyer tax credit. You will certainly need to refund the improperly received credit and, quite likely, interest too. Be sure to write a letter explaining your situation and you just might be able to have any penalties waived. @Linda: Sorry for your frustrating experience. The law has always excluded married couples where one spouse previously owned a home. As such, you never qualified for the first time home buyer tax credit. You will certainly need to refund the improperly received credit and, quite likely, interest too. Be sure to write a letter explaining your situation and you just might be able to have any penalties waived.

]]> By: Linda http://totalcandor.com/blog/2008/09/first-time-homebuyer-tax-credit-when-a-credit-isnt-a-credit-but-its-still-free-money/comment-page-4/#comment-250986 Linda Sun, 23 Jan 2011 04:05:40 +0000 http://totalcandor.com/blog/?p=251#comment-250986 I used tubo tax in JaN 2009 TO FILE MY TAXES FOR 2008. I efiled prior to the changes being made in early 2009. I read everything that the progam had to offer about the firsttime homebuyers credit and it never said that if your spouse owned a home it could not be taken. IRS even told me I was due $500 dollas more and needed to file an ammended returrn if I wanted the exta $500. I even bought my house under the first time homebuyers program FHA. My realtor and lender said I qualified. I am being audited now and it seems that they may be disqualifying me because my husband owned a home. What now? Taxes, penalties, interest? Shouldn't turbo tax be to blame somehow? I used tubo tax in JaN 2009 TO FILE MY TAXES FOR 2008. I efiled prior to the changes being made in early 2009. I read everything that the progam had to offer about the firsttime homebuyers credit and it never said that if your spouse owned a home it could not be taken. IRS even told me I was due $500 dollas more and needed to file an ammended returrn if I wanted the exta $500. I even bought my house under the first time homebuyers program FHA. My realtor and lender said I qualified. I am being audited now and it seems that they may be disqualifying me because my husband owned a home. What now? Taxes, penalties, interest? Shouldn’t turbo tax be to blame somehow?

]]> By: Michael http://totalcandor.com/blog/2008/09/first-time-homebuyer-tax-credit-when-a-credit-isnt-a-credit-but-its-still-free-money/comment-page-4/#comment-239881 Michael Sun, 19 Dec 2010 18:34:36 +0000 http://totalcandor.com/blog/?p=251#comment-239881 @Mike: Definitely. Buying a home from your mother has always been excluded from credit qualification. Sorry. @Mike: Definitely. Buying a home from your mother has always been excluded from credit qualification. Sorry.

]]> By: Mike http://totalcandor.com/blog/2008/09/first-time-homebuyer-tax-credit-when-a-credit-isnt-a-credit-but-its-still-free-money/comment-page-4/#comment-239500 Mike Sat, 18 Dec 2010 16:34:55 +0000 http://totalcandor.com/blog/?p=251#comment-239500 I purchased my mothers home in December 2008 and was given the credit. I just recently got notification from the IRS they are taking the credit away. Is that accurrate? I purchased my mothers home in December 2008 and was given the credit. I just recently got notification from the IRS they are taking the credit away. Is that accurrate?

]]> By: Michael http://totalcandor.com/blog/2008/09/first-time-homebuyer-tax-credit-when-a-credit-isnt-a-credit-but-its-still-free-money/comment-page-4/#comment-217345 Michael Wed, 13 Oct 2010 00:05:07 +0000 http://totalcandor.com/blog/?p=251#comment-217345 @Jacob: Yes, but try to fight the interest and penalty they'll assess too. You should be able to get out of any penalty based on your explanation. Interest might be a tougher battle. Double-check your data entry for the program you used. If they made a mistake you might have recourse but, being totally candid, the mistake was probably your own, even if the wording left something to be desired. Sorry, just the messenger. @Jacob: Yes, but try to fight the interest and penalty they’ll assess too. You should be able to get out of any penalty based on your explanation. Interest might be a tougher battle. Double-check your data entry for the program you used. If they made a mistake you might have recourse but, being totally candid, the mistake was probably your own, even if the wording left something to be desired. Sorry, just the messenger.

]]> By: Jacob http://totalcandor.com/blog/2008/09/first-time-homebuyer-tax-credit-when-a-credit-isnt-a-credit-but-its-still-free-money/comment-page-4/#comment-217299 Jacob Tue, 12 Oct 2010 20:54:14 +0000 http://totalcandor.com/blog/?p=251#comment-217299 Maybe we're idiots for doing this without proper research, but all we knew about First Time Home Buyer Credit is that TurboTax, TaxCut, or whichever software we used for our 2008 taxes said we were allowed to claim it for our home purchase in Oct. 2007. Now we've just received a note from the IRS claiming we weren't eligible and to provide documentation within thirty days or it will be "corrected." Are we screwed? We'll owe $7,500 back immediately because the tax software told us to enter it and the inept IRS sent us the money? Maybe we’re idiots for doing this without proper research, but all we knew about First Time Home Buyer Credit is that TurboTax, TaxCut, or whichever software we used for our 2008 taxes said we were allowed to claim it for our home purchase in Oct. 2007. Now we’ve just received a note from the IRS claiming we weren’t eligible and to provide documentation within thirty days or it will be “corrected.”

Are we screwed? We’ll owe $7,500 back immediately because the tax software told us to enter it and the inept IRS sent us the money?

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