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Frequent Contributor
RW771
Posts: 311
Registered: ‎08-16-2011
0

Tax credits/questions for first time homebuyers?

Does anyone know if there are any type of tax credits being offered for first time homebuyers this year? I know they had the 8K credit back in 2009 and even on the IRS website under tax changes for this year it mentions the first time homebuyer tax credit, but it's a little deceiving as to whether there's still one or not.

 

Also, what can be written off for tax purposes? I understand only improvements/supplies are deductible and not repairs/supplies, as well as real estate taxes and property taxes that were paid within the year. Since all of my expenses have been for painting/updating I don't believe anything I've bought can be deducted :smileysad:.

 

We also had to buy a new washer and dryer in which the washer was an Energy star appliance, but apparently the tax incentive to deduct this expired back in March.

 

Just trying to deduct everything I can think of that I'm allowed to. It's been a tough year for us (as I'm sure it has for us all) so we need all we can get! It would be nice to get even a little back or at least some sort of tax break!

 

TIA!!! 

05/31/2013 672 EQ (Fico), 03/08/2012 697 TU (Fico)

Closed on my first home 12/07/11! Officially a homeowner, thanks to this forum!!!

Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: Tax credits/questions for first time homebuyers?

Don't forget your PMI is a right off right now, too.  That could end but it hasn't yet.  (If you have PMI).

Great question - can't wait to see the answers!

 

I'm biting the bullet and going to a CPA this year.  Usually do them online for free but I want to make sure.  If I go in there and find out I could have done this myself, at least I know that for sure.  (Oh yay, plus last year I forgot to hit the submit button, so I'm no pro! This summer when my LO to ordered my tax transcripts, fwe ound out I didn't file!  Laughing now, wasn't then.    DOH!)

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: Tax credits/questions for first time homebuyers?

PS: if you did, hopefully you didn't but we did, take $ out of a 401 for the down payment, the first 10K of that is penalty free since it goes toward the first home purchase.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Frequent Contributor
RW771
Posts: 311
Registered: ‎08-16-2011
0

Re: Tax credits/questions for first time homebuyers?


Booner72 wrote:

Don't forget your PMI is a right off right now, too.  That could end but it hasn't yet.  (If you have PMI).

Great question - can't wait to see the answers!

 

I'm biting the bullet and going to a CPA this year.  Usually do them online for free but I want to make sure.  If I go in there and find out I could have done this myself, at least I know that for sure.  (Oh yay, plus last year I forgot to hit the submit button, so I'm no pro! This summer when my LO to ordered my tax transcripts, fwe ound out I didn't file!  Laughing now, wasn't then.    DOH!)


Yep I'm a slave to PMI for the next 6-7 years so I'll definitely be taking advantage of that while I can! I usually do my taxes myself too, but I have too many deductions this year and afraid I may miss some things, especially with the new house! It may cost a little more to have our taxes done this year but it'll be worth it to catch some things we may have missed on our own!

05/31/2013 672 EQ (Fico), 03/08/2012 697 TU (Fico)

Closed on my first home 12/07/11! Officially a homeowner, thanks to this forum!!!

Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
0

Re: Tax credits/questions for first time homebuyers?

Good Luck, RW.

 

Does anyone out there have any other ideas on what can be written off?

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Valued Contributor
mauve
Posts: 2,487
Registered: ‎02-18-2010
0

Re: Tax credits/questions for first time homebuyers?

Mortgage interest, property taxes, energy efficient improvements.  Your energy company may have rebates for buying energy star appliances (and incentives for other improvements).  My state has a homestead property tax credit, where you can get back up to $1200 of paid property taxes.  I tried last year's form last night out of curiosity and there's something about taking a percentage of your income and figuring out the difference between that and the property taxes paid and then 60% of that you can get back, assuming that all of the numbers work out. 


Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
Previous High Score: EQ 700 TU04 712 EX 726
Current Score: EQ 740 TU(Discover) 750 EX(AMEX) 747
Goal Score: 740+ all around


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GBlaire
Posts: 1
Registered: ‎02-05-2013
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Re: Tax credits/questions for first time homebuyers?

Buying a home is still a great investment, despite of the current state of the economy and house market. However, making the resulting taxes that accompany owning a home can lead to confusion and uncertainty. If you are a homeowner and are preparing to do your taxes - or hand them off to a tax preparer - make sure that you're taking advantage of all the homeowner tax credits to which you are entitled. Based on your region, income and the state of your house, there are three big money-saving tax credits many people can pursue: the Energy Property Tax Credit, Mortgage Insurance Deduction and New Homeowner Credit. These are the basics; for additional information on each tax credit, consult with the Internal Revenue Service. Or you can read more here. :smileywink:

Valued Member
rubu
Posts: 47
Registered: ‎01-05-2013
0

Re: Tax credits/questions for first time homebuyers?

First time home buyer tax credit is for 2008-2010 home purchases.....

http://www.irs.gov/uac/First-Time-Homebuyer-Credit-1

 

 

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Tax credits/questions for first time homebuyers?

Check with your local housing authority for special programs. Our housing authority has a program that rolls 3% of our downpayment into a second mortgage so we only needed 0.5% down for FHA that was fully covered by our earnest money. There also may be grants you can apply for too.
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