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Home Buying Tax Credits???

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mopowers
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Home Buying Tax Credits???  Reply with quote  

Can anyone tell me if the $8000 federal first time home buyers tax credit is a "write-off" you subtract from your taxable income, or an actual credit you subtract from the taxes you paid??

I'm confused.

Does the CA state 'new home' tax credit work the same way?
Post Wed Mar 18, 2009 7:48 pm
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littleroc02us
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They haven't written 2009's 1040 form yet, but I believe its a credit off of your taxable income.
Post Wed Mar 18, 2009 8:09 pm
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littleroc02us
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I found this on the following website:

http://www.federalhousingtaxcredit.com/2009/faq.php#3

How do I claim the tax credit? Do I need to complete a form or application?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.
Post Wed Mar 18, 2009 8:57 pm
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mopowers
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So, in that case, it isn't a 'write-off' you adjust your taxable income with. By reading that, it leads me to believe it is an actual credit. In other words, if you got back $1000 in taxes, you would now get back $9,000.
Post Thu Mar 19, 2009 12:08 am
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Scrutnizer
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I would like to relocate to another state and buy a home before the credit expires while I still have enough in savings for down payment but my current rental and utilities are slowly depleting same while my husband has been unemployed for the first time in 35 years.
Post Thu Dec 31, 2009 10:16 am
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