Where Everybody Knows You're Numb

Psych Lit · Guru

RE: First Time Homebuyer

Date: Sun Mar 1 10:21 AM, 2009

MyCat8it wrote:

Anonymous wrote:

Okay, so, it's a total of $7500 per property regardless of ownership, BUT, it can be split between two unmarried owners, each claiming a portion of the credit/loan.

The way I understand it is the $7500 for 2008 is not a true tax credit. And, 2009 is only after 3 years. And, the gross is fairly low so, with 2 singles buying jointly it seems the credit would phase out quickly. me

The first part is correct. If you read the rest of the thread, I mention how purchases in 2008 are eligible for the interest free loan, and not the credit. The clients I have coming in miss the credit by 3 days.

You may be misunderstanding the new law. You can obtain the credit right away, either on your 2009 return, or by amending your 2008 return if necessary. You don't have to wait 3 years to get the credit, but you DO have to live in the house for 3 years in order to keep the money.

The phase-out for single filers begins at $75,000 AGI, and is completely phased out when your AGI hits $95,000. ($150k - $170k for married filing joint).

I might agree that many people won't qualify due to income limits, but many will.

We are saying the same on the three years and, I understand the credit is immediate. I don't see it as a credit untill three years are up;) Untill it passes the hoops and, it has no stipulation that it must be paid back and, seeing something with all the what ifs would have kept us out of this mess in the first place. I must mis understand some of it because, no matter how much I am told I still say no loan is interest free. And, those without any down payment have odds of failure stacked against them. me

MyCat8it · Senior Member

Anonymous wrote:

Okay, so, it's a total of $7500 per property regardless of ownership, BUT, it can be split between two unmarried owners, each claiming a portion of the credit/loan.

The way I understand it is the $7500 for 2008 is not a true tax credit. And, 2009 is only after 3 years. And, the gross is fairly low so, with 2 singles buying jointly it seems the credit would phase out quickly. me

The first part is correct. If you read the rest of the thread, I mention how purchases in 2008 are eligible for the interest free loan, and not the credit. The clients I have coming in miss the credit by 3 days.

You may be misunderstanding the new law. You can obtain the credit right away, either on your 2009 return, or by amending your 2008 return if necessary. You don't have to wait 3 years to get the credit, but you DO have to live in the house for 3 years in order to keep the money.

The phase-out for single filers begins at $75,000 AGI, and is completely phased out when your AGI hits $95,000. ($150k - $170k for married filing joint).

I might agree that many people won't qualify due to income limits, but many will.

Date: Sun Mar 1 9:32 AM, 2009

MyCat8it wrote:

MyCat8it wrote:

Found it. Straight from the horse's mouth:

Line 1.If two or more unmarried individuals buy a mainhome, they can allocate the credit among the individual
owners using any reasonable method. The total amount
allocated cannot exceed the smaller of $7,500 ($8,000 if
you purchased your home in 2009) or 10% of the
purchase price. See

Purchase price on page 3.
Part II CreditNote.

A reasonable method is any method that does not
allocate all or a part of the credit to a co-owner who is
not eligible to claim that part of the credit.

Okay, so, it's a total of $7500 per property regardless of ownership, BUT, it can be split between two unmarried owners, each claiming a portion of the credit/loan.

The way I understand it is the $7500 for 2008 is not a true tax credit. And, 2009 is only after 3 years. And, the gross is fairly low so, with 2 singles buying jointly it seems the credit would phase out quickly. me

MyCat8it · Senior Member

Psych Lit wrote:

MyCat8it wrote:

I read a tax planning tip somewhere that unmarried couples could benefit even more if they buy the house together, because then, they would each qualify for the credit.

I need to research this a bit more, I think I read it on a CCH publication. But, this time of year, it wouldn't be unusual to find that I dreamt it.

If it's true, that could be huge for gay couples everywhere.
polishing up the crystal ball...im predicting a lot of het folks suddenly getting the same sex marriage issue only from the back end of things. this would be wonderful if true and quite the segue into a legal challenge if they change the rules

Found it. Straight from the horse's mouth:

Line 1.If two or more unmarried individuals buy a mainhome, they can allocate the credit among the individual
owners using any reasonable method. The total amount
allocated cannot exceed the smaller of $7,500 ($8,000 if
you purchased your home in 2009) or 10% of the
purchase price. See

Purchase price on page 3.
Part II CreditNote.

A reasonable method is any method that does not
allocate all or a part of the credit to a co-owner who is
not eligible to claim that part of the credit.

Okay, so, it's a total of $7500 per property regardless of ownership, BUT, it can be split between two unmarried owners, each claiming a portion of the credit/loan.

Psych Lit · Guru

MyCat8it wrote:

I read a tax planning tip somewhere that unmarried couples could benefit even more if they buy the house together, because then, they would each qualify for the credit.

I need to research this a bit more, I think I read it on a CCH publication. But, this time of year, it wouldn't be unusual to find that I dreamt it.

If it's true, that could be huge for gay couples everywhere.
polishing up the crystal ball...im predicting a lot of het folks suddenly getting the same sex marriage issue only from the back end of things. this would be wonderful if true and quite the segue into a legal challenge if they change the rules

MyCat8it · Senior Member

Psych Lit wrote:

MyCat8it wrote:

I have a new client coming in on Monday night. They bought a house on December 29, 2008. Now, if they closed on this house a mere 3 days later, they could have received an additional $500 and wouldn't have to pay it back. IMO, they should retroactively make the $7500 a credit instead of a loan.
yikes and by not making it retroactive there is a chance that people will remember that and wait til the end of this year to see if things worsen and better deals cut the next year. that could delay a housing recovery.

I read a tax planning tip somewhere that unmarried couples could benefit even more if they buy the house together, because then, they would each qualify for the credit.

I need to research this a bit more, I think I read it on a CCH publication. But, this time of year, it wouldn't be unusual to find that I dreamt it.

If it's true, that could be huge for gay couples everywhere.

Psych Lit · Guru

MyCat8it wrote:

I have a new client coming in on Monday night. They bought a house on December 29, 2008. Now, if they closed on this house a mere 3 days later, they could have received an additional $500 and wouldn't have to pay it back. IMO, they should retroactively make the $7500 a credit instead of a loan.

yikes and by not making it retroactive there is a chance that people will remember that and wait til the end of this year to see if things worsen and better deals cut the next year. that could delay a housing recovery.

MyCat8it · Senior Member

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First-Time Homebuyer Credit