1st time homebuyer's credit $8000.00 not $7500.00
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Did the recently passed stiumulus bill provide for an $8000.00 credit instead of the former $7500.00 credit for first time homebuyers? I am only getting a credit of $7500.00 for one of our clients when I plug in the info.
Answer
1) Yes, curse those Congresspeople.
2) Wait for the forms to be updated. Acts of Congress do not magically transmogrify themselves into filing-ready forms.
Comment
Does the new law waive the payback of the credit for "2008" purchases? The literature indicates that the recapture of the credit is waived for purchases "after 12-31-08." Looks like the taxpayer is being penalized for purchasing the home too early.
Comment
When did a 15 year interest free loan become a "penalty" because someone else got closer to the hog trough?
Comment
2008 purchasers have to repay the credit. 2009 purchasers don't unless they dispose of the property within 36 months of purchase.
Comment
Anytime anyone else gets closer to the hog trough, it's perceived as a penalty by them who are now a bit farther away. When I'm King of the World, there will be no social engineering via tax return. :)
The master IRS page with links to details is here:
Comment
Think of it this way: one of my poorest clients took money out of his 401K, his IRA, and everything he had, to get a high-rate mortgage and purchase his first home in May 2007. If only there had been a bill like the 2008 bill, applying to 2007, he wouldn't be owing IRS $7000-odd today. He'll manage to pay off IRS, but he surely could have used that first-time homebuyer credit, even if it were only a cash-flow-saver. It would have saved his paying the IRS all the interest on his installment agreement. So whoever can get the 2008 interest-free loan, more power to them.
Comment
The $8,000 credit is for home purchases from 1/1/09-11/30/09 but may be claimed on the 2008 tax return. IRS has (just) updated Form 5405 but it is not in Lacerte yet. 2008 purchases are only eligible for $7,500.