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Old 01-15-2010, 07:29 PM
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Puzzled by First Time Homebuyer Ad/Promo

Funny we didn't know that the credit was 10% of the purchase price until ammending 2008 return. Our CPA didn't quote anything less than $8000. even when we discussed the fact that it, 'seemed too good to be true' - we were assured it was 'true'.

To top things off, we also learned that if you are buying the home with more than one person, the eligible party receives only their % portion of the credit.

Can anyone discredit this? I'm hoping it's a myth!

I also misposted a message under 'Filing Requirements' that is related to this same issue.



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Old 01-16-2010, 04:57 PM
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You are correct in noting that "the tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000."

Also, in a situation where there are multiple buyers, "the buyers can allocate the tax credit in any reasonable manner, provided neither claims a tax credit higher than the one they qualify for and the home purchase does not yield a total of more than $8,000 in tax credits. For example, the one of the first time home buyer could claim $6,500 and the first-time home buyer could claim $1,500. Alternatively, both buyers could claim a $4,000 tax credit."

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Old 01-17-2010, 12:23 PM
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Why are we hearing $8000.?

Quote:
Originally Posted by TaxGuru View Post
You are correct in noting that "the tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000."

Also, in a situation where there are multiple buyers, "the buyers can allocate the tax credit in any reasonable manner, provided neither claims a tax credit higher than the one they qualify for and the home purchase does not yield a total of more than $8,000 in tax credits. For example, the one of the first time home buyer could claim $6,500 and the first-time home buyer could claim $1,500. Alternatively, both buyers could claim a $4,000 tax credit."
Are that many people investing in $800,000. properties that the ads boast $8000. credit? This seems very unfair as no mention of 10% is made.



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Old 01-27-2010, 10:05 PM
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Stape - I think you have miscalculated. 10% of $800,000 is $80,000 - therefore, you would have to purchase an $80,000 home in order to get the full $8,000 (8,000 * .1 = 8,000), which is a pretty common price for a home.



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Old 01-28-2010, 09:49 AM
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Originally Posted by mchel_27 View Post
Stape - I think you have miscalculated. 10% of $800,000 is $80,000 - therefore, you would have to purchase an $80,000 home in order to get the full $8,000 (8,000 * .1 = 8,000), which is a pretty common price for a home.
Right you are! Thank you for that - and we have been given the all clear by CPA...all is well.



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