How do you get the $7,500 tax credit?

ScrimpAndSave · #1 (**permalink**) 01-09-2009, 05:27 PM

If you are buying a home before July 1st 2009, I understand that you may be eligible for a tax credit $7,500...which is basically an interest free loan.

Would you get this $7,500 tax credit the following year when you file your tax information? Is there any way of getting it up front?

MonkeyMama · #2 (**permalink**) 01-09-2009, 05:56 PM

No, you have to wait for when you file your return.

BTW, the credit is not available if you buy a home from a relative. Just FYI - I know you have talked about buying from your dad.

ScrimpAndSave · #3 (**permalink**) 01-09-2009, 06:43 PM

Thanks Monkeymama...i was looking at buying a different home possibly this summer.

momof1in150 · #4 (**permalink**) 01-10-2009, 04:16 AM

If you pm me your e-mail I will forward you the document I have for 1st time homebuyers on the tax credit (really a loan for now).

ScrimpAndSave · #5 (**permalink**) 01-10-2009, 05:19 AM

Thanks momof1of150! I know you have to start paying it back in two years years...and i guess you have around 15 years to do it..I will pm you my address.

Thanks again!

momof1in150 · #6 (**permalink**) 01-10-2009, 05:26 AM

If you buy before July 1, 2009 you can take it on your 2008 taxes and you start paying it back in 2009. You would file an amendment to your taxes if you have already filed. It is 500 per year for 15 years. There are income limitations but that is the basic info. I sent you the info.

ScrimpAndSave · #7 (**permalink**) 01-10-2009, 05:30 AM

Thanks!

gamecock43 · #8 (**permalink**) 01-10-2009, 06:30 AM

Now I have a question- how much play does the mortgage interest deduction come into play regarding the payback? Can they cancel each other out if you are in a low enough tax bracket?

MonkeyMama · #9 (**permalink**) 01-10-2009, 06:37 AM

Good point momof1 - that is the part I forgot.

Gamecock - the 2 aren't related at all. It is feasible though that the $500 annual repayment is more than the tax savings you could get from mortgage interest, yet. Very feasible.

But the $7500 has really nothing to do with taxes anyway. It's an interest-free loan. So the $500 repayment is not a tax. It's just administered through the tax system, so makes it a bit confusing. Does that answer your question?

gamecock43 · #10 (**permalink**) 01-10-2009, 06:38 AM

yes. Thank you!

Multima$tery · #11 (**permalink**) 01-10-2009, 11:45 AM

This is a very interesting topic that I wasn't aware of ~ Thanks!

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)