8000.00 first time home buyer credit =income??

[Beeheery]

hi all,
does anyone know if the 8000.00 tax credit people can get for first time home buyer counts as income? my bf wants to take advantage of this opportunity and purchase a condo but if i wait a few more months to file and my 341 is after he gets his refund, would that be counted as income and they try to take or at least say i dont qualify for ch 7? if so, it would throw me over the means test i believe so i am not sure what to do. if anyone knows, please let me know! thanks again

[JRScott]

I assume if it's a tax credit wouldn't appear til next year so I don't think it would matter.

[Flamingo]

The $8,000 tax credit is a credit that will reduce the amount of tax owed on 2009 taxes and will be on the 2009 tax forms to be taken (along with the energy credit for this year, child credit, etc.) if one actually buys their first house in 2008 prior to 12/1. What that can generate would be a refund which would not be received until 2010 after filing 2009 taxes. Always go to www.irs.gov to look up any tax related IRS questions to be on the safe side of anything tax related.

[Beeheery]

Hi, thanks for your responses. My bf already filed, didn't owe, received a refund, and because of it, would receive the FULL 8k. He was told he can file an amended return and receive the 8k this year. That's why I am kinda unsure.

[HHM]

Umm, he might be being a bit optimistic about his chances to get a mortgage if he "just filed BK".

[Beeheery]

LOL, no. HE is not filing. Just me. I meant he already filed his taxes. We just live together. None of our accounts are linked and it is my debt solely. But I am pretty sure I have to include his income on my forms for household income. This is why I am confused.

[Flamingo]

Hi, thanks for your responses. My bf already filed, didn't owe, received a refund, and because of it, would receive the FULL 8k. He was told he can file an amended return and receive the 8k this year. That's why I am kinda unsure.

Let me get this straight...your bf wants to purchase a condo this year as a first time home buyer making him eligible for the $8,000 tax credit. He cannot take the tax credit until he files his 2009 returns and until he purchase a first home prior to 12/1/09. Has he or you investigated this with the IRS? You mention that he was "told he can file an amended return and receive the 8k this year." Who told him that? Was it the IRS? A tax credit is taken on the tax return for the year in which the credit is usable (i.e., first home purchase in 2009). I don't understand how your bf can file an amended 2008 return to get an $8K tax credit for a credit for a 2009 first home purchase... What you need to do is get the correct information on this tax credit from the IRS or a tax expert. As it stands now, if he did purchase a home this year prior to 12/1, he would be eligible for the credit but cannot take the credit until he files his 2009 tax return. He cannot file an amended return for 2008 to get the credit because the credit is not available for tax year 2008.

The credit on his 2009 tax return (filed next year) may generate a refund for him next year unless he owes over $8k in taxes.

[Beeheery]

Two realtors told us he could and then I read this this morning saying we could too. Maybe I am just confused??? http://realestate.msn.com/article.as...4651&GT1=35000

[Logan]

Two realtors told us he could and then I read this this morning saying we could too. Maybe I am just confused??? http://realestate.msn.com/article.as...4651&GT1=35000

Don't listen to any realtors. All they care about is selling you a house so they can collect their money and their knowledge is mostly wrong.

Take it from a guy who used to do business with realtors.

Logan

[Beeheery]

And I was having such a great day Logan..... lol.

[Flamingo]

Taken from your link...."The new law sweetens a provision known as the "first-time homebuyer credit." In essence, if you meet certain qualifications, you may be eligible for a tax credit of as much as $8,000. You also have a choice of claiming the credit on your federal income-tax return for 2008 or 2009. A credit is typically more valuable than a deduction, since it eliminates your taxes on a dollar-for-dollar basis — and in this case, you may get it even if you don't owe any taxes."

It appears after reading further that it is possible to get the credit this year but there are many complexities involved. May I highly suggest as to your question about whether or not that $8,000 credit could be considered "income" for your bf for your Bk purposes that you consult with a tax expert. You will probably get varying opinions on forums so go straight to the source or call the IRS. The "credit" issue appears to be a complex matter and I would not fool around with it otherwise and yes, be careful of what real estate agents tell you - they want to make sales badly. Also, there are limitations it appears to qualify for the credit as to income, etc.

[Beeheery]

Thank you Flamingo. I guess I just assume that everyone is honest and wouldn't want to scam two young people who are just trying to get their lives going. I will talk to my bf and also call another lawyer and see what they say. I would hate for us to pass up this chance on making some $$ while at the same time purchasing a home but maybe it is too good to be true.