Credit for 2009 home purchase

[Lucho]

Iunderstand for what I read that the $8,000 tax credit for taxpayers buying a house in 2009 before Dec. 1 is just an offset to the tax liability and not refundable. Am I right.

Thank you

Lucho.

[mcb39]

You are wrong. It is a refundable credit.

[Jack from Ohio]

The credit IS REFUNDABLE. The amount of the credit is 10% of the purchase price with a MAXIMUM credit of $4,000 for single, and $8,000 for married couple.

There is a MYTH that the credit is $8,000 despite filing status or purchase price.

There is also a MYTH that land contracts qualify.

I have answered these two questions at least 25 time this week.

[Don in Upstate NY]

The amount of the credit is 10% of the purchase price with a MAXIMUM credit of $4,000 for single, and $8,000 for married couple.

The maximum credit for a single filer is the full $8,000. The MFS maximum is $4,000. See the form.

[RoyDaleOne]

Can you explain what a land contract is, please?

Here in Florida, we have a thing we call a "contract for deed".

[JohnH]

I think they are the same thing - just depends on your state.

Here's a prety good discussion:

http://en.wikipedia.org/wiki/Land_contract

[Lucho]

The credit IS REFUNDABLE. The amount of the credit is 10% of the purchase price with a MAXIMUM credit of $4,000 for single, and $8,000 for married couple.

There is a MYTH that the credit is $8,000 despite filing status or purchase price.

There is also a MYTH that land contracts qualify.

I have answered these two questions at least 25 time this week.

Thank. When reading from different sources we can get confused. God bless this forum.

Lucho

[RoyDaleOne]

If the land contract includes a dwelling unit, is there some reference for it not qualifying for the credit.

My research, and other people's research, has resulted in the conclusion that a "contract for deed" would qualify for the credit.

See jainen answer on quickfinder.

[jainen]

>>See jainen answer on quickfinder.<<

If you wouldn't mind, please post a link or quote for that sententious wisdom. Even I don't know what it was.

[Jack from Ohio]

If the land contract includes a dwelling unit, is there some reference for it not qualifying for the credit.

My research, and other people's research, has resulted in the conclusion that a "contract for deed" would qualify for the credit.

See jainen answer on quickfinder.

Could you share some of your sources to back that up?

[RoyDaleOne]

http://www.irs.gov/newsroom/article/0,,id=206291,00.html

A residence as defined under Section 121, last paragraph.

http://www.quickfinder.com/message_board/t...redit_67285.mbx

Keith v. Commissioner, 115 T.C. 605 Completed Sale for Tax Purposes

Keith v. Commissioner, 115 T.C. No. 42 (Dec. 28, 2000) Same....

Equitable ownership

Also, I read and can not quickly find that the a video conference with the IRS, this question was asked. The response was reported in to be yes a contract for deed qualifies for the credit. Sorry that reference is also at quickfinders link, see MikeMack.