We’ve discussed the $8,000 Home Buyers Tax Credit at length (see archive of several posts). But sometimes a video is worth more than 8 posts and 307 comments.
This video, from the Chief Tax Economist from the National Association of Home Builders, explains the major points pretty well. The FAQ referenced at the end of the clip is here.
If you’ve got any questions on the home buyer tax credit, fire away in the comments. I am not a tax professional, not do I play one on TV or the Internet, but I’ll answer what I can and point you where to find answers if I can’t!
Hat tip to my friend, the great Maureen Francis, at MiOaklandCounty.com.
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this is an excellent blog. Thank you from a Reno Real Estate Agent.
With everyone hooked on video these days, hopefully this will help get the information to the masses. It also makes for a great reference point for first time home buyers who have questions.
Thank you for the video. That was pretty long, but it explained everything you need to know about the new tax credit.
**Portland Real Estate´s last blog post..Bay 13
Fantastic break down of the $8000 tax credit for first time buyers. You can write all day long about something like this but having it broken down in simple form with a video simplifies the whole thing. I have started using a few more videos on my site and the visitor not only seems to understand the issue better, they stay longer. Really nice video and blog. There’s not a better real estate blog on the internet than The Phoenix Real Estate Guy.
Thank you for posting this video. It will be a great resource to some clients in case they ask about the first time home buyer credit.
That was a great video explaining the many rules of the tax credit; thanks for sharing! You can always find great resources for us all.
Great video for home buyers wondering if they qualify-putting it into video was a genius way to reach the masses.
A wonderful way to reach people that are more attracted to watching a video than to reading pages and pages of text to learn the quick, key points of the tax credit. Thanks for sharing the video!
I really like the video. In Ohio the state has even taken up a bill that would give first time home buyers additional tax credits on a state level.
**Cincinnati Real Estate´s last blog post..Cincinnati Real Estate: Tax Credit For Vacant Home Buyers
Wonderful video on the tax credit your government is offering for first time home buyers-it hit all the major questions very nicely.
Thank you for the video and great information.
Thanks for sharing the video:) It has answered most of the questions homebuyers are asking….
Great video on first-time home buyers tax credit details. It goes over alot of different scenarios and addresses most questions. Thanks Jay!
Great way to generate some first time home buyers. Could be a pitch.
good explanation and a great video
Jay,
It appears that your embedded video has been “removed by the user”. I quickly searched, but I couldn’t find another copy. The positive comments made me want to see it.
Steve
**Steve Lines´s last blog post..Top 10 Reasons College Graduates Should Use FHA Loans to Buy a House
Well that is unfortunate! It was a very well done video… I looked around too Steve and can’t locate another copy. Sorry!
Ha! Found another copy and have updated the post.
I would like to purchase a house now that we have the opportunity to get the 8,000 tax credit. However, I will be moving out of the country to work starting April 2010. Will I have to pay by the 8,000 if I am not officially residing in the house. I would not be renting it out to anyone else. But since I am going to be working 12-months a year out of the country, does that mean the government will not consider the house my primary residence.
Thanks in advance for anyone who replies to my question.
AlphaFemale – I would strongly suggest speaking to a tax adviser / CPA. Your situation is somewhat unique and you sure don’t want to get into a repayment situation if it can be avoided. It will be much easier to set things up correctly in the beginning vs. after the fact. Seek professional help.
Jay-
Thanks for the advice. I spoke with the IRS and they indicated that as long as I do not sell the property or rent it out, it doesn’t matter if I am working outside of the U.S. for the entire year because when I am in the country, this place would still be considered my primary residence.
Very good video, we offered information on the tax credit as well and found people were unsure if it could be used for a down payment abd yes the $8,000 tax credit can be used as a down payment
**Home Buying Blog´s last blog post..Beware of Foreclosure Scams
I was wondering if I usually get $3000 back on my income tax and then I buy a house… do I get the $3000 plus the $8000 tax credit? So does that mean I will get $11,000 back on my 2009 income tax? Let me know please. Thanks!!
Great Find! Will share with my Minneapolis-St Paul Network!
I agree the major points he had disqus went pretty well, do this gut have more videos that I could watch?
I agree the major points he had disqus went pretty well, do this gut have more videos that I could watch?
I agree the major points he had disqus went pretty well, do this gut have more videos that I could watch?
I agree the major points he had disqus went pretty well, do this gut have more videos that I could watch?
Can you tell me if there is a timeframe that you have to own the house before selling it in order to receive the credit? I may be moving out of the state in a year, but would love to buy a home now. Thanks!
My son is active duty military and deploying overseas in November. Will there be an extended or deferred ending date for the housing credit for deployed military personnel? He is not scheduled to return to the U.S. until late spring 2010. Thanks – Bill , Seattle WA,
I have a question in regards to the new house tax credit. In 2000 we purchased a mobile home in Oregon. The home is still in our name, however we are renting it out. The mobile home is in a park and not on its own land. We are now in the process of purchasing a condo in Az. My question is will we be eligible for the housing tax credit?
It's a very good blog. I am following your blog regularly and got great information.Having written articles that require this much work, I commend you for your service to the future bloggers. I’m sure they will appreciate it! Great job.Thanks.
Great article.I think it’s really a useful article i have ever seen.This post is likable, and your blog is very interesting.Thanks for making such a cool blog.It's really amazing.Thanx for all.Keep blogging.
Bill – Sadly, I've heard no mention what-so-ever of any sort of extension for deployed military.
No, you wouldn't be eligible. The credit is for first time homebuyers, defined as those that haven't owned a home in the last three years. You own a home right now. You're renting it out, but you still own it.
Bill – Sadly, I've heard no mention what-so-ever of any sort of extension for deployed military.
No, you wouldn't be eligible. The credit is for first time homebuyers, defined as those that haven't owned a home in the last three years. You own a home right now. You're renting it out, but you still own it.
Can my brother buy a hosue he rents from me and receive the housing tax credit? Tax forms just say etc. when describing relations. Is selling to a brother not allowed if he wants the credit? Thanks, Nick
I think the video is great! gives a nice detailed explanation and answers some questions that other videos on the tax credit don't answer
While many housing groups support extending the housing tax credit, others worry that an extension would cause consumers to postpone their decision to buy, rather than responding the urgency of an expiring federal credit. Economists also suggest that expanding the credit to all buyers is less effective economically than the current first-time buyer requirement.
http://betterblog.ning.com/profiles/blogs/feder...
I am closing on November 24th. The seller wants to do a rent back so he can stay in the house until December 5th. Will giving him this rentback mess up my receiving the $8000 tax credit. I'm not buying the house for renting it and will move in December 6th.
Thanks.
Willy – I don’t THINK so, but I’d double check with a tax professional.
If i get my tax credit at tax time and i sell my house for example this fall do i have to pay back the credit?? thank you
If i get my tax credit at tax time and i sell my house for example this fall do i have to pay back the credit?? thank you
Mark – Yes, you’d have to repay the tax credit if the home ceases to become your primary residence within 36 months.
Straight from the IRS:
If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due.
I want to help my grown children become first time homebuyers and get full advantage of the Housing tax credit. I have identified a house for $200,000. They will each own a deeded undivided interst in 50% of the property. I will finance the full purchase price. They will use the house as their full time residence. Are they each entitled to $8000 credit?
Alan –
I can say with about 99.99% certainty that they will not *each* be entitled to an $8K credit. If that were the case, married couples all across the country would be enjoying a combined $16K in tax credits. Or people would be jointly buying homes together to “double-dip” on the tax credit. Neither of those scenarios are happening.
Since you are financing the purchase, they may not be eligible for a credit at all. See the IRS rules for form 5405 (the homebuyer tax credit form):
http://www.irs.gov/pub/irs-pdf/i5405.pdf
Homes that are gifts are excluded from the credit. As are homes acquired from a related person.
It’s not that big a stretch to see the IRS claiming since you are financing the home for your children that it’s a “gift” or that they’ve “acquired” it from you. Regardless of how the home is deeded, the IRS may not consider your children “buyers” as they have nothing to do with the financing. Things always get tricky with the IRS when it comes to transactions involving relatives.
However, I am not a tax professional, and you should seek the advice of a tax professional. This isn’t something you want to take any chances with.