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Well, I have the details, straight from the IRS - for all of those who were wondering - After much investigation, this was the final answer, from the IRS: If a couple purchases a home, one spouse qualifies for $4000, and the other spouse qualifies for $4000. One does not get the full $8k (if married). We did file seperately in 2008, but not allowed and ammendment, and even if filing jointly, this would still apply: According to the stimulus credit rules, Since I was NOT on the deed at closing, even if I add my name to the deed now, and do an ammendment - The house would be considered a "gift" to me by the IRS, therefore 'gifts' do not qualify for the first-time home buyers tax credit. Thus, My $4k part of the credit is null. I do not qualify. The only credit the IRS will allow us is $4k for my husband.
What is worse, is that in my investigation, it has been determined that I could have been put on the deed at closing, and just because I was not on the loan, would not affect me being on the deed. However, My real estate agent told me that I could not be on the deed at closing. Nobody can answer why I was told that, and unfortunately - at the time - I trusted my agent that this was the correct thing to do, and did not question his councel on this.
So, thanks all for your replies - Unfortunately the last and most important reply (from the IRS) denying my $4k for the reasons above is the final answer on my first time homebuyers tax credit.
Not what I was hoping for, but I guess everyone gets hosed in some way by not knowing these "hidden details" - so HOPEFULLY my posts helps others know this and they can avoid the disappointment.
Depending on your state, the lender could ask for you not to be on the deed, making it easier on them f they have to foreclose. Meaning, they ask for an addendum removing your name from the title or they will not approve the loan.
I have had this happen several times - usually a quit claim deed for half of the interest is done after closing and filed in the county.
Interesting to find out. So let me ask this - if both my wife and I file jointly, but I'm the only one on the deed, do we still qualify for the $8k? Or do I only get $4k also? Hmmm.... gonna have to go look this one up. I'm not even sure if we're both on the deed or not (I think we are though).
Does anyone know how the tax credit works when a land/home package is involved? I know it is 10% of the purchase price up to $8,000 but in my situation would it only be taking into account the price of the home itself? I negotiated the price on my home down several thousand and so it is under 80k but does that mean I am I only going to get 10% of that price? My total loan amount (USDA) for the land and improvements, etc. is going to be well over 100k so would I get the full $8,000 or simply 10% of the price on the home? It wouldn't be much difference but several hundred dollars more would always come in handy.
Well, I have the details, straight from the IRS - for all of those who were wondering - After much investigation, this was the final answer, from the IRS: If a couple purchases a home, one spouse qualifies for $4000, and the other spouse qualifies for $4000. One does not get the full $8k (if married). We did file seperately in 2008, but not allowed and ammendment, and even if filing jointly, this would still apply: According to the stimulus credit rules, Since I was NOT on the deed at closing, even if I add my name to the deed now, and do an ammendment - The house would be considered a "gift" to me by the IRS, therefore 'gifts' do not qualify for the first-time home buyers tax credit. Thus, My $4k part of the credit is null. I do not qualify. The only credit the IRS will allow us is $4k for my husband.
What is worse, is that in my investigation, it has been determined that I could have been put on the deed at closing, and just because I was not on the loan, would not affect me being on the deed. However, My real estate agent told me that I could not be on the deed at closing. Nobody can answer why I was told that, and unfortunately - at the time - I trusted my agent that this was the correct thing to do, and did not question his councel on this.
So, thanks all for your replies - Unfortunately the last and most important reply (from the IRS) denying my $4k for the reasons above is the final answer on my first time homebuyers tax credit.
Not what I was hoping for, but I guess everyone gets hosed in some way by not knowing these "hidden details" - so HOPEFULLY my posts helps others know this and they can avoid the disappointment.
PLEASE call the IRS again to verify the information you were given ...if you and your husband file an amended return for 2008 to change to a joint filing status and file F5405, then I believe you will be entitled to the full $8K (if your home cost more than $80K of course). Being married but only 1 of you "paid" for the house has no bearing on the amount of credit you can claim. That simply defies logic, since single taxpayers are entitled to the full credit. (If joint filers claim the credit but sell house w/in 3 years, credit needs to be paid back and each spouse is treated as having been allowed half of the credit for purposes of repayment)
Remember, this is all new to the Reps at IRS also so you might have been misinformed...don't give up yet!
I know it is 10% of the purchase price up to $8,000
That sounds odd. That means there are places where you can buy a house for LESS THAN $80,000???? Where? I don't think there's anywhere in NJ where you could buy the most fixer-upperest of fixer uppers for that. You couldn't buy an empty lot!
I know it is 10% of the purchase price up to $8,000
That sounds odd. That means there are places where you can buy a house for LESS THAN $80,000???? Where? I don't think there's anywhere in NJ where you could buy the most fixer-upperest of fixer uppers for that. You couldn't buy an empty lot!
Hell, you can't even pump your own gas in NJ......
You can get a $80,000 or less home about anywhere. Most likely will be small and need a lot of updates/repairs..
Here are a few in Las Vegas:
Great Single Story!! (http://lasvegas.craigslist.org/reb/1351886831.html - broken link)
BANK OWNED LISTED AT ONLY $54 PSF NORTHWEST SINGLE STORY WITH NO HOA! (http://lasvegas.craigslist.org/reb/1352069246.html - broken link)
First-Time Homebuyer Credit Provides Tax Benefits to 1.4 Million Families to Date, More Claims Expected (http://www.irs.gov/newsroom/article/0,,id=213375,00.html?portlet=6 - broken link)
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- After much investigation, this was the final answer, from the IRS: If a couple purchases a home, one spouse qualifies for $4000, and the other spouse qualifies for $4000. One does not get the full $8k (if married). We did file seperately in 2008, but not allowed and ammendment, and even if filing jointly, this would still apply: According to the stimulus credit rules, Since I was NOT on the deed at closing, even if I add my name to the deed now, and do an ammendment - The house would be considered a "gift" to me by the IRS, therefore 'gifts' do not qualify for the first-time home buyers tax credit. Thus, My $4k part of the credit is null. I do not qualify. The only credit the IRS will allow us is $4k for my husband. 
Not what I was hoping for, but I guess everyone gets hosed in some way by not knowing these "hidden details" - so HOPEFULLY my posts helps others know this and they can avoid the disappointment.
