Category Archives: Property

Lakefront Property

Today TaxMama hears from Carol in New York who tells us. “ I inherited lakefront property in 1999. I recently sold it for $60,000.00 and I am holding the mortgage with payments being made of $600.00/month. Do I have to report the sale; and how will taxes be calculated?”

Worker, Homeownership, and Business Assistance Act of 2009

Key provisions in the bill: Worker, Homeownership, and Business Assistance 1) The credit is renewed to home purchases under contract as of April 30th, as long as the purchase closes within 60 days. (That means you don’t have to rush to close escrow by the end of this month. Whew!) 2) Other homeowners qualify for […]

Equitable Owner

Today TaxMama hears from Sean in North Carolina. “As I understand it you must be an owner and be liable to claim the home mortgage interest and property tax as deductions on schedule A. Now I hear you can be an equitable owner whose name is not on the mortgage and also whose name is […]

First Time Homebuyers Credit Audit Documentation

If you have filed for the First Time Homebuyers Credit and your refund has been delayed, it’s because IRS will, sooner or later contact you for proof of the purchase of your home. [Source: IRS National Phone Forum Presentation Oct 2009] Required Documentation for Audits • Copy of closing contract (HUD-1 Settlement Statement) • Most […]

TIGTA Audits IRS’s Administration of First-Time Homebuyer Credit

The Internal Revenue Service (IRS) may have allowed thousands of taxpayers to claim millions of dollars in First-Time Homebuyer Credits (the Credit) to which they were not entitled, according to a new report publicly released today by the Treasury Inspector General for Tax Administration (TIGTA). TIGTA found that some taxpayers claimed the Credit for homes […]

What is a New Home

Today TaxMama hears from Linda in Florida, who tells us. “I have been buying a piece of land for about 9 years. Recently I purchased a mobile home ($500.00 cash) to put on it. Does this qualify me for the new home purchase tax refund?”

First-Time Homebuyers Have Several Options to Maximize New Tax Credit

WASHINGTON — As part of the Treasury Department’s consumer outreach effort and with the April 15 individual tax filing deadline approaching, the Internal Revenue Service today began a concerted effort to educate taxpayers about additional options at their disposal to claim the new $8,000 first-time homebuyer credit for 2009 home purchases. For people who recently […]

1st Time Homebuyer Credit Allocation For Unrelated Co-Owners

by David & Mary Mellem, EAs Overview ­ The 1st Time Homebuyer Credit was created in 2008. Basiically it allows a refundable credit of 10% of the cost of a principal residence, up to a maximum credit of $7,500 ($3,750 for MFS). The credit is reported on the Form 1040, line 69. (The credit is […]

Housing Act gives and takes away tax benefits

On July 26, 2008, the Senate passed the “Housing Assistance Tax Act of 2008” (H.R. 3221). The president is expected to sign the bill. Among its provisions are: A refundable credit of up to $7,500 on the purchase of a principal residence by a “first-time homebuyer.” A first-time homebuyer is a taxpayer who hasn’t owned […]