tax credit

pettybob1 · Joined: 07 Sep 2009 Posts: 37 0.24 Dollars($)

I read that the tax credit is "refundable." What does that mean?

gmakerley · Posted: Fri Sep 11, 2009 7:02 am Post subject:

can you give us some context please? where did you read this?

simonhovell · Joined: 03 Sep 2009 Posts: 36 -0.12 Dollars($)

pettybob1

you can claim excess tax deduction. same is true about wrong evaluation of taxes

gmakerley · Posted: Fri Sep 11, 2009 11:47 am Post subject:

is it just me?

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

pretty

If you read that Tax credit needs to be paid back, that was true. But the new tax credit rule does not reuiqre you to pay back that money

gmakerley · Posted: Mon Sep 14, 2009 6:28 am Post subject:

this is from the IRS website. there is, actually, an occasion on which the tax credit must be paid back:

"Generally, there is no requirement to pay back the credit for a principal residence purchased in 2009. The obligation to repay the credit on a home purchased in 2009 arises only if the home ceases to be your principal residence within 36 months from the date of purchase. The full amount of the credit received becomes due on the return for the year the home ceased being your principal residence."

take care, first time homebuyers, to be certain you plan to remain in your new home for at least 3 years.

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

Thanks for brining clarity to the post George

pettybob1 · Joined: 07 Sep 2009 Posts: 37 0.24 Dollars($)

thanks to all

propertyinfo · Joined: 04 Oct 2009 Posts: 14 0.36 Dollars($)

So any property that you live in for at least 3 years has the interest on the motgage as tax deductible?

wow, talk about an incentive to buy rather than rent. doesn't this cost the country a fortune in lost tax revenue?

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

propertyinfo

The discussion is abotu $8000 taxcredit for first timehoembuyer

If you purchase a home before november 30th 2009, you will get $8000 tax credit and it will be spread over three years of yoru tax return

But you shoudl not have owned the house in the last three years before the purchase date

About your section questions, isnt it goign to cost a lotof money for the goverment, then the answer is yes, it will and it is

All this money is comign fromthe tax payers and we as country are goign in to lot of debt

leeelliot61 · Joined: 13 Sep 2009 Posts: 189 20.14 Dollars($)

hi pettybob,

the tax credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

Thats correct. Even if you are not laible to pay taxes, you get that money

thewretched02 · Joined: 23 Jun 2009 Posts: 115 23.90 Dollars($)

the purpose of this is presumably to stimulate the property market? I have mixed feelings about such artifical stimulation measures, but I guess in desperate times you have to be willing to think outside the box.

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