Comments on: Myth Busted: $7,500 First Time Home Buyer Tax Credit is Not a Credit

By: tom lamphier

tom lamphier — Thu, 31 Mar 2011 18:04:21 +0000

i took the credit 7500 dollars. only to find out 2 years later that i now owe 15 years x500, the whole process was misleading, basically lied to by goverment!

By: Scott

Scott — Fri, 25 Mar 2011 23:47:50 +0000

I filed for the first time home buyers tax credit in 2010 for the 2009 credit. I was not allowed the clam due to the fact that I was married and my ex wife owned a house. I responded with a letter to the IRS that stated that I had never owned the house and that my ex bought the house before we got married. We did file joint on our taxes though. after that i got a letter like clockwork every 45 days telling me they were still looking into it. I was also requested to send a copy of my divorce papers which i did. Today (1.5 yrs later) i received a letter denying my clam once again. How If I have never owned a house till now am I not allowed this clam??? It makes absolutely no sense to me.

By: Tina

Tina — Sun, 19 Dec 2010 10:21:17 +0000

What happens if you took this credit on your 2008 return and then lost your home to foreclosure. Do you still have to pay this back?

By: » First Time Home Buyer Tax Credit

» First Time Home Buyer Tax Credit — Tue, 24 Feb 2009 17:09:32 +0000

[...] Home Purchases: Buyers can get a $7,500 First Time Home Buyer Tax Credit. The credit is 10% of the purchase price of your home, capped at $7,500. The credit is a 0% [...]

By: » Economic Stimulus Plan Highlights

» Economic Stimulus Plan Highlights — Thu, 12 Feb 2009 15:02:42 +0000

[...] Tax Credit in favor of an $8,000 home buyer tax credit for first time home buyers. Unlike the 2008 $7,500 Home Buyer Tax Credit it doesn’t need to be [...]

By: Leo

Leo — Fri, 24 Oct 2008 18:08:31 +0000

Can someone answer this one? On the “First Time buyer” – Loan, it is defined that a first time buyer can not have owned a primary or main residence in the last three years. In 2004 I seperated from my wife and I moved out and had a lease on a rental property that became my primary residence. I still was required to pay the mortgage on the home during the divorse and later ended up loosing the house to my ex in the divorse. The house was refinance without my name and I signed over ownership. Since this was not my residence since 2004 and can prove with utility bills and lease would I qualify for the $7,500.00?

By: Wally

Wally — Fri, 10 Oct 2008 04:59:49 +0000

Madison
I am glad to see that you can’t be fooled by this so called credit. The IRS just needs to call it what it is, help in buying a home, nothing more.

By: Tax Carnival #41: TaxtoberFest 2008 | My Journey to Millions

Tax Carnival #41: TaxtoberFest 2008 | My Journey to Millions — Tue, 07 Oct 2008 01:20:41 +0000

[...] Dollar Plan breaks down the alleged $7,500 First time Home Buyer Tax Credit here. GREAT INFO! Wow, I had no idea it was just a loan albeit at 0%. [...]

By: Don't Mess With Taxes

Don't Mess With Taxes — Mon, 06 Oct 2008 05:28:14 +0000

Tax Carnival #41: TaxtoberFest 2008…

Guten tag, y’all! It’s Oktoberfest time in Texas! The Lone Star State, and particularly Central Texas, has a strong German heritage. And those traditions are still strong in New Braunfels, Gruene, Fredericksburg, Schlitterbahn, the German-Texan Herit…

By: Ashley

Ashley — Wed, 24 Sep 2008 23:32:10 +0000

So, I did the math, and if you put the $7500 in an account that earns 3% apy then make a $500 dollar withdrawal every year to pay for the ‘credit’, in the end, you’re left with $2385 in the account in fifteen years.

By: Kristin

Kristin — Wed, 24 Sep 2008 04:11:53 +0000

I was thinking about this. Seems like a neat way to get some insurance against financial hardship, kind of a safety net. I bought my first home in June, with enough money for the down payment, loan, can afford my payments & I have a good paying job, etc. Seems like I could take the credit/loan and hold on to the money in a higher yield account. Say I lost my job next year or had something disastrous happen and needed to sell the house, possibly at a loss. I would have gotten this money and have more cushion than I do now, but wouldn’t have to pay it back if I took a loss on the house if, for instance, home prices continued to go down, etc. I see the point that maybe it’s giving more irresponsible people more money to “think” they can afford a house they can’t, but I think this could be extremely beneficial for a lot of people as long as they understand the terms, benefits & risks.

By: mia

mia — Sat, 20 Sep 2008 01:56:21 +0000

I’ve heard they changed the deadline to November of 2008. Is that true? Does it mean I have to move in by November? My condo will not be done till December.
thanks

By: Madison

Madison — Fri, 19 Sep 2008 18:57:27 +0000

@ Steve: Looks like you are out of luck. Since you’ll be married for your 2008 tax filing (the status applies to the entire year) it looks like you would both need to qualify, especially since you are building the house together. I can’t find anything that says otherwise.

@ Daniel: Unfortunately, it’s all or nothing. So if you missed it by a week, you won’t qualify. Uggh, to be so close and not get, that sucks. Congrats on your new house though!

By: Daniel

Daniel — Fri, 19 Sep 2008 04:33:02 +0000

Im a little disapointed with this tax credit….the times that you can qualify for this tax credit-loan is april 9, 2008-july 1 2009 i bought my first house just a week before that….that must mean i don’t qualify….im a single parent, need extra money to have some major work done on this house and i can’t qualify…thanks alot congress and Mr. President….

By: WealthiHer Blog Network » Blog Archive » Carnival of Personal Finance at BankerGirl

Tue, 16 Sep 2008 15:30:58 +0000

[...] Dollar Plan – Myth Busted: $7,500 First Time Home Buyer Tax Credit is Not a Credit. This is helpful information for people thinking about buying a home because of the [...]