the 8k tax credit

[illnevergetthis 5]

You can also use this tax credit if you have not owned a house in the past three years.

[Mo_Mati 2]

Usually you have to repay this but this year if you file as an amendment it is not repayable.

You do NOT have to file an amended return.

As long as you are a first time homebuyer and close on the house BEFORE December 1st, you will qualify for the tax credit and will not have to repay it if the home is your principal residence and you remain in the home for 3 years.

I have been told that you must be closed by NOV 30, but also to remember that that is the Monday after Thanksgiving. There probably will not be that many people closing on that date, and especially with people being out of the office on Thur. and Fri. of the week before....well, time is of the essence!

Good luck

[Nich-Nick 3,353]

Tax credit for down payment? Apparently some lenders (FHA loans) allow for some creativity to use the anticipated $8K, not as the 3.5% down payment but to apply toward a larger down payment, closing costs, etc. See the article and discuss with your lender. I recently bought a home and I'm currently selling my present home to a first time buyer. They are getting an FHA loan so I've been reading up on it.

http://moneyfeatures.blogs.money.cnn.com/2...-payment-loans/

Also time is indeed of the essence. It takes a long time from deciding on a home to close the deal. You wrangle back and forth on the offer with the seller. You have to apply for the mortgage and suppy financials. (Luckily you probably have everything handy from just doing the I-864) Then there's inspections and appraisals and surveys to be scheduled. I'm guessing 30-60 days from deciding on a house to closing. It is wise to be pre-qualified by a lender while you shop. A seller is more likely to accept your offer knowing you can follow through with a mortgage if you have a letter showing that your qualify. Also you have cut down some of the time to get the mortgage approval by submitting financials ahead of time. A pre-qualification does not mean mortgage approval. There's lots more to submit to get the underwriters to approve for a certain property.

[*JG* 2]

Thank you for the article and the clarification.

I am still waiting on my 2009 taxes to do this. But, it's good to know all the details in clarity.

[HikerMark 5]

The key thing to remember about this credit is that it is only available if you haven't owned a principal residence in the last three years. If you lived in and owned a principal residence in the last three years in your foreign country before moving to the US then you do not qualify for the credit.

Remember that once you become a US resident the IRS Code looks worldwide and not just within the US.

[celtic59 0]

The key thing to remember about this credit is that it is only available if you haven't owned a principal residence in the last three years. If you lived in and owned a principal residence in the last three years in your foreign country before moving to the US then you do not qualify for the credit.

Remember that once you become a US resident the IRS Code looks worldwide and not just within the US.

How do they know if you owned a home before you even got married to the US citizen in your own country? We were told it didn't matter,(by a realtor in Oregon) only of you owned a home in the US, we are hoping to close before the final cut-off. My husband has never owned a home anywhere.

[HikerMark 5]

How do they know if you owned a home before you even got married to the US citizen in your own country? We were told it didn't matter,(by a realtor in Oregon) only of you owned a home in the US, we are hoping to close before the final cut-off. My husband has never owned a home anywhere.

They will find out when they audit your tax return. 95% of the time it would never be picked up but if you are one of the 5% that get picked for an audit then you could be in trouble if you can't convince them that you made an innocent mistake.

Bear in mind that the IRS is currently investigating over 100,000 first time buyer credit claims on suspicion that they have been claimed in error or fraudulently. There is therefore a high risk of any return with a first time buyer credit claim being investigated by the IRS.

As you are hoping to close before the final cut-off date I would advise you to speak to a local CPA or Enrolled Agent or even the IRS help line. Don't rely on tax advice from this forum. Get confirmation one way or the other in writing from a local tax specialist. The few dollars the advice will cost is small beer in context of the $8,000 credit or worse still the penalties etc if the claim is made incorrectly.

Finally, I wouldn't rely on tax advice from a realtor. Their expertise is buying and selling properties not tax advice.

Best of luck with your house purchase.

[Empress of Groovy 373]

We bought our first home (condo) in January 2009 and received the credit as part of our 2008 tax return.

One thing to keep in mind is that if the home ceases to be your principal residence within three years of the closing date, you have to pay back the credit.

We really lucked out w/ our timing. We got a great deal on the condo and an excellent interest rate as well (5%). Now is the time to buy if you can.

Good luck!

[HikerMark 5]

I have just discovered on the IRS web site that owning a principal residence outside the US in the past three years does not disqualify you from the first time home buyer credit. It is about 2/3rds of the way down this link.

So incoming LPRs are OK.

[*JG* 2]

It's a really great thing. And, if you make improvements that fall under that energy efficiency credit, it's doubly good. I got new windows and doors on my house this year too. Woo hoo. Can't wait to file my taxes.

[Mononoke28 134]

I read this week that they may be extending the cut off date for the tax credit. So if they agree to do so, that means that there's still hope for us who couldn't do it this year.

Diana