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Sometimes the right thing is simply the right thing regardless of what else wrong is going on.
Of course the etihcal people get screwed in all this but .......... hasn't it always been that way?
Absolutely right. WE just bought a new house - our first time but it's our retirement home. We are foregoing the $8K because the rules are that the homeowner(s) must move in before Nov 1 AND it must be the primary residence. We don't retire for almost 2 years.
Absolutely right. WE just bought a new house - our first time but it's our retirement home. We are foregoing the $8K because the rules are that the homeowner(s) must move in before Nov 1 AND it must be the primary residence. We don't retire for almost 2 years.
Here's some good news for you. There's no such requirement as "move in before Nov 1."
You may also want to look into the definition of "primary residence"
See text copied below, from the IRS Regulations under I.R.C. Section
121.
PRINCIPAL RESIDENCE.
In the case of a taxpayer using more than one property as a residence, whether property is used by the taxpayer as the taxpayer’s principal residence depends upon all the facts and circumstances.
If a taxpayer alternates between 2 properties, using each as a residence for successive periods of time, the property that the taxpayer uses a majority of the time during the year ordinarily will be considered the taxpayer’s principal residence.
In addition to the taxpayer’s use of the property, relevant factors in determining a taxpayer’s principal residence, include, but are not limited to:
(i) The taxpayer’s place of employment;
(ii) The principal place of abode of the taxpayer’s family members;
(iii) The address listed on the taxpayer’s federal and state tax returns, driver’s license, automobile registration, and voter registration card;
(iv) The taxpayer’s mailing address for bills and correspondence;
(v) The location of the taxpayer’s banks; and
(vi) The location of religious organizations and recreational clubs with which the taxpayer is affiliated.
You know, he isn't even planning on buying the house FOR the kids, he wants to buy the house and use the kids for the tax credit
There is someone on the real estate subforum who wants to claim he isn't a homeowner b/c he paid his house off 8 years ago. So, you know, he qualifying for the first time home buyers credit to buy a second home, cause he hasn't had a mortgage.
Consider yourself lucky, be glad for what you have
Thanks for reminding me of this. I am lucky and blessed and feel like a real idiot for venting. I guess it just ticks me off that it seems we are rewarding people for doing the wrong thing.
Be careful trying to do anything tricky with this credit. I was audited by the IRS when I filed for it. I had to send proof of sale with the seller's name and my name shown, and since it was a new house I had to send a copy of the CO. It took 2 or 3 months and a phone call for me to get my credit, which required them to pay me interest. When I made a phone call to figure out what was going on I was told I was randomly selected for an audit. It took them 5-6 weeks just to process the paperwork I sent in.
Location: Sometimes Maryland, sometimes NoVA. Depends on the day of the week
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Quote:
Originally Posted by kcam213
Thanks for reminding me of this. I am lucky and blessed and feel like a real idiot for venting. I guess it just ticks me off that it seems we are rewarding people for doing the wrong thing.
Oh I understand I'm in a similar situation. I wanted a new car this summer, but my 7-year-old one with 150k miles didn't qualify. I was very annoyed, not only for the C4C, but b/c C4C drove the demand for the car I wanted up to the point I couldn't find one, and if I did, they wanted $3-4k over MSRP (not even invoice). I still don't have my car LOL And housing... eh... we are going to sell in the spring (unexpected job change) and will lose a ton of money (actual money, we bought in 2007 ). And sometimes I get bratty about it. But, I really try to breath deeply and think that I would rather be in the place I am now, than depending on the $8k to help me sell a house that would go into foreclosure.
Thanks for the info but it was based on this document that we knew we could not use the house as our primary residence. We live AND WORK in a state way too far away to even use this property as a weekend retreat. At most we will visit it a few times per year. The house is in TN and we live in NYC.
As for the move in, I wish I could find that info, but I can't. Perhaps I misinterpreted "take possession" as meaning move in. Either way, it doesn't matter. We don't qualify. And neither of us is willing to deal with IRS penalties and interest based on an $8K tax credit. Luckily it wasn't figured into our purchasing decision. We had been looking for 2 years.
Oh I understand I'm in a similar situation. I wanted a new car this summer, but my 7-year-old one with 150k miles didn't qualify. I was very annoyed, not only for the C4C, but b/c C4C drove the demand for the car I wanted up to the point I couldn't find one, and if I did, they wanted $3-4k over MSRP (not even invoice). I still don't have my car LOL And housing... eh... we are going to sell in the spring (unexpected job change) and will lose a ton of money (actual money, we bought in 2007 ). And sometimes I get bratty about it. But, I really try to breath deeply and think that I would rather be in the place I am now, than depending on the $8k to help me sell a house that would go into foreclosure.
yah, it seems we have similiar experiences. as far as the C4C, it sure seemed like a big scam or something.
My SIL was going to trade in my brother's older car for a new fuel efficient one. He has a 2000 Buick Park Avenue...a true gas hog... but she was told it was 2 mpg over the requirements... HOW COULD THAT BE??? A Buick Park Avenue -- gas efficient????
I guess you had to be one of those BigDummies (in my best Fred Sanford voice) who bought a Hummer in order to get the credit.
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I'm in a similar situation. I wanted a new car this summer, but my 7-year-old one with 150k miles didn't qualify. I was very annoyed, not only for the C4C, but b/c C4C drove the demand for the car I wanted up to the point I couldn't find one, and if I did, they wanted $3-4k over MSRP (not even invoice). I still don't have my car LOL And housing... eh... we are going to sell in the spring (unexpected job change) and will lose a ton of money (actual money, we bought in 2007 
