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I already own one house in my own name. Purchased it when I was single.
We are buying another home (will be our primary residence). I'm currently renting out my other house.
Now it seems the "new tax credit proposal is down to $8000 from $15000"
But the $8000 tax credit will only apply to first time homebuyers.
So if I put the house title only in my wife's name (I have the mortgage in my name only), can we still claim it as a "first time homebuyer" since this would be her first home and the title is under her name?
I'm paying over 100K in Fed Taxes from tax year 2008 and I want to reclaim some of my money back. Losing out on $8000 is a big deal. It's not the 15K we were hoping for but 8K is still plenty enough to warrant doing this type of circumvention.
I do not think the new 8000 tax credit is income limited like last year's 7500 tax credit.
Federal Housing Tax Credit for First-Time Home Buyers: Frequently Asked Questions (http://www.federalhousingtaxcredit.com/faq.php#2 - broken link)
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.
By the way--I was crowing yesterday about how the 15,000 credit would work so nicely for me--this will be just the opposite, because I don't qualify for it, but it will tend to drive the cost of housing up the in neighborhoods where I want to buy
Federal Housing Tax Credit for First-Time Home Buyers: Frequently Asked Questions (http://www.federalhousingtaxcredit.com/faq.php#2 - broken link)
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.
I know, that provision was for last year's tax credits (the one you had to pay back).
I was asking about this year's real tax credit credit.
If that's the case, since my wife's name will be the only one appearing on the deed, she's technically the owner. I do not plan on putting myself on the deed at all. When they said husband and wife (they assume both would put their names on the deed). I do not want to put myself on the deed because of liability issues.
First the lender may not allow you to be the mortgage holder and your wife only on title. If your wife is the only one on title she can sell the house without you which is the banks collateral for the loan.
Second, you would be the holder of the note and therefore the purchaser, not your wife. Remember the 1099 from the bank with the interest payments will be in your name not hers. The IRS has no way of knowing who is on title, but it is clear who is on the mortgage.
Third, I don't think details about the new tax credit are clear yet. I know it would be for purchases Jan 1, 2009-August 31st, 2009. I think details should be out in the next couple of days.
First the lender may not allow you to be the mortgage holder and your wife only on title. If your wife is the only one on title she can sell the house without you which is the banks collateral for the loan.
Second, you would be the holder of the note and therefore the purchaser, not your wife. Remember the 1099 from the bank with the interest payments will be in your name not hers. The IRS has no way of knowing who is on title, but it is clear who is on the mortgage.
Third, I don't think details about the new tax credit are clear yet. I know it would be for purchases Jan 1, 2009-August 31st, 2009. I think details should be out in the next couple of days.
Nice of you to answer the question the OP ask's so very well but aren't you bothered by the way people always try to scam...since that is basically what this is...another way to scam other tax payers by lying...I hope this new tax incentive isn't going to make the rest of us pay more.....or maybe others will call it a smart thing!
If the Op would do it and his wife sells his house under his butt and walks away with the money...I would laugh my A$$ off....haha and than he can start another thread and come with a sob story!..just to save $ 8,000.-
Nice of you to answer the question the OP ask's so very well but aren't you bothered by the way people always try to scam...since that is basically what this is...another way to scam other tax payers by lying...I hope this new tax incentive isn't going to make the rest of us pay more.....or maybe others will call it a smart thing!
If the Op would do it and his wife sells his house under his butt and walks away with the money...I would laugh my A$$ off....haha and than he can start another thread and come with a sob story!..just to save $ 8,000.-
I'm not that concern about her walking about with the home. Trust me, she would have a lot more to lose if she did that since I am the breadwinner in the family.
It's tricky with my name on the mortgage and hers on the title and I the other poster is probably right that the bank would not be happy with her name on the title and not mind.
But this housing credit is a big deal. I'm closing in on the home in 3 weeks and that 8000 thousand is a lot of money. I know people will say, "well, you guys earn enough money," But that's not the point. The point is to stimulate the economy, especially the housing economy. I have money to spend, and would actually use whatever "tax credits". Unlike others who would simply hoard the money.
I'm not that concern about her walking about with the home. Trust me, she would have a lot more to lose if she did that since I am the breadwinner in the family.
It's tricky with my name on the mortgage and hers on the title and I the other poster is probably right that the bank would not be happy with her name on the title and not mind.
But this housing credit is a big deal. I'm closing in on the home in 3 weeks and that 8000 thousand is a lot of money. I know people will say, "well, you guys earn enough money," But that's not the point. The point is to stimulate the economy, especially the housing economy. I have money to spend, and would actually use whatever "tax credits". Unlike others who would simply hoard the money.
I am in the exact same boat as you ... I own a home but my wife is not on the title or the loan... so I thought I could have her apply for the 8k when we do our taxes.. we always file seperatly anyways.. . we close in 2 weeks and was really looking forward to the extra 15k to help out with taxes and the fear of the unknown a year from now..
Now I see that they kicked the 15k and made the 8k to only first time home buyers so this leaves my wife and I with no assistance..
I shall have to see what comes of this in the next few days.. it doesn't look good for us..I have read alot of post that people who were on the fence about buying a home has totally held off all together..
I'm not that concern about her walking about with the home. Trust me, she would have a lot more to lose if she did that since I am the breadwinner in the family.
It's tricky with my name on the mortgage and hers on the title and I the other poster is probably right that the bank would not be happy with her name on the title and not mind.
But this housing credit is a big deal. I'm closing in on the home in 3 weeks and that 8000 thousand is a lot of money. I know people will say, "well, you guys earn enough money," But that's not the point. The point is to stimulate the economy, especially the housing economy. I have money to spend, and would actually use whatever "tax credits". Unlike others who would simply hoard the money.
So if you are closing in 3 weeks then you qualified for a home and can make the payments. This is not a make it or break it deal for you to not get the credit.
Not everyone in the US should feel it's owed to them. There's probably plenty of folks out there where that credit is a lifesaver for them and will allow them to buy a home.
I don't think you care about "stimulating the economy" because you are already doing that by purchasing a home. I'll leave my comment at that.
"There's probably plenty of folks out there where that credit is a lifesaver for them and will allow them to buy a home."
Are you referring to the current $7500 credit, that can be taken on 08 or 09 taxes?
As I understand it, the $7500 credit does not 'allow' you TO buy a home, it is for those that have or will buy a first time residence between app. 4/08 and 7/09. You would still to need to qualify for a mortgage to begin with, regardless of your choice to accept the credit later or not.
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..just to save $ 8,000.-
