How to calculate Tax Returns with Home Purchase

[Maikeru-sama]

If only you could hold off for maybe one more year (next year) to buy a house, I bet you would get a better rate.

Your rate now is not bad...but I think things are going to get better.


Make a plan, Stan!

I disagree.

I think rates will be in the 6's by the end of the year.

However, the Government still has about 2/3 of the 1.2 trillion they slated to buy up bad mortgatges. So if they decide to start buying up more bad assets, it will push rates down.

I plan on staying on my house for a long time, so depending on what my lender says, I may try to buy points to get to 4.5%.

There was a good article on WSJ and Bankrate that said that people who were waiting for rates to go below 4% have probably missed out.

 

[Kevinicus]

Anyone know much about the rules for that stupid $8,000 tax credit? Stupid things that give free money to some people just piss me off. But I figure I should try to get my share since I get screwed not having kids.

My house is entirely in my name and my wife has never owned a home, so I was wondering if it might be worth looking into selling the house to my wife to get the credit. Anyone know if that is allowed, or did the stupid stimulus just completely deem I'm not worthy of a credit because I already own a home and make my payments on time?

 

[theogt]

Anyone know much about the rules for that stupid $8,000 tax credit? Stupid things that give free money to some people just piss me off. But I figure I should try to get my share since I get screwed not having kids.

My house is entirely in my name and my wife has never owned a home, so I was wondering if it might be worth looking into selling the house to my wife to get the credit. Anyone know if that is allowed, or did the stupid stimulus just completely deem I'm not worthy of a credit because I already own a home and make my payments on time?

It's not about anyone being "worthy" or "not worthy." It's about stimulating the housing market.

Your tax fraud idea seems remarkably stupid. I hope you're kidding.

 

[Maikeru-sama]

My understand of the $8000 Tax Credit is that you have to meet 1 of 2 requirements:

1) You have to be a First Time Home Buyer

Or

2) You could not have purchased a home in the past 3 years.

With or without the Tax Credit, I would stil be looking for a home, the Tax Credit does add some incentive. I've rented ever since I graduated from college in 2001, lived frugally and now I feel like it is time to go ahead and purchase.

The Government gives incentives to do things all the time, not sure why an incentive to purchase a home to stimulate the Mortgage Industry is being criticized.

Besides, with inflation, medical premiums going up and taxes, the Government will definately get that money back from me....

 

[Kevinicus]

It's not about anyone being "worthy" or "not worthy." It's about stimulating the housing market.

Your tax fraud idea seems remarkably stupid. I hope you're kidding.

How would it be fraud? I am not lying or claiming anything untrue. My wife would be a first time home buyer. If that is the condition for the credit, then that's the condition for the credit. It is perfectly legal for me to sell my house to her. We're just as entitled to $8,000 from the government as some couple who has never bought a house. It's a stupid law, so there is no reason I shouldn't take advantage of it, if possible.

 

[theogt]

How would it be fraud? My wife would be a first time home buyer. If that is the condition for the credit, then that's the condition for the credit. It is perfectly legal for me to sell my house to her. We're just as entitled to $8,000 from the government as some couple who has never bought a house. It's a stupid law, so there is no reason I shouldn't take advantage of it, if possible.

Spouses count has homeowners.

I'm not sure why you feel entitled to it. No one is entitled to it. It's not there to reward anyone. It's there for a single purpose and I can't for the life of me see how it's a "stupid law" if it achieves that purpose.

 

[Kevinicus]

If you can't see how it's a stupid law, then there's no helping you, but that's really for the other forum.

I know I'm not entitled to it. I said I was just as entitlted to it as someone else. They're not entitlted to it either (or at least they SHOULDN'T be).

If spouses count as homeowners, then they do and that's that. Though that seems odd since it is 100% in my name, it only goes on my credit, and I am the only one responsible for it.

 

[theogt]

If you can't see how it's a stupid law, then there's no helping you, but that's really for the other forum.

I know I'm not entitled to it. I said I was just as entitlted to it as someone else. They're not entitlted to it either (or at least they SHOULDN'T be).

You're right. It's the wrong forum for this discussion.

If spouses count as homeowners, then they do and that's that. Though that seems odd since it is 100% in my name, it only goes on my credit, and I am the only one responsible for it.

Depends on your state's laws. She very well may have a significant property claim to the home.

 

[AbeBeta]

If you can't see how it's a stupid law, then there's no helping you, but that's really for the other forum.

I know I'm not entitled to it. I said I was just as entitlted to it as someone else. They're not entitlted to it either (or at least they SHOULDN'T be).

If spouses count as homeowners, then they do and that's that. Though that seems odd since it is 100% in my name, it only goes on my credit, and I am the only one responsible for it.

Sorry buddy, the credit is for either spouse. You aren't a first time homeowner so neither of you qualify. Stupid law? No. The present law prevents multiple purchases within the same family -- clearly the spirit of the law is promote primary dwelling ownership, not investment properties. It also rules out the sort of fraud you propose.

I find it amusing that you'd be so interested in taking advantage of a "stupid law" when judging from your other posts, you'd be all over someone if they took advantage of "stupid" welfare laws.

 

[Sarge]

I find it amusing that you'd be so interested in taking advantage of a "stupid law" when judging from your other posts, you'd be all over someone if they took advantage of "stupid" welfare laws.

Exactly...........

 

[Kevinicus]

Sorry buddy, the credit is for either spouse. You aren't a first time homeowner so neither of you qualify. Stupid law? No. The present law prevents multiple purchases within the same family -- clearly the spirit of the law is promote primary dwelling ownership, not investment properties. It also rules out the sort of fraud you propose.

I find it amusing that you'd be so interested in taking advantage of a "stupid law" when judging from your other posts, you'd be all over someone if they took advantage of "stupid" welfare laws.

Unlike most of those who take advantage of those welfare laws I have paid taxes, and because I'm cheated out of more money to pay for those who get extra deductions and credits for children and what not, maybe I do feel entitled to a little money back at some point. Though, those that deserve it the most (the wealthy) will never be eligible.

 

[AbeBeta]

Unlike most of those who take advantage of those welfare laws I have paid taxes, and because I'm cheated out of more money to pay for those who get extra deductions and credits for children and what not, maybe I do feel entitled to a little money back at some point. Though, those that deserve it the most (the wealthy) will never be eligible.

Oh I see. It is OK for you to cheat because you feel you are being cheated. I expect that many on welfare feel they've been cheated a bit along the way as well. Many come from neighborhoods with deteriorating schools that can't attract decent teachers, live in high crime areas where the police look the other way. Whether you agree that they are cheated or not is irrelevant. I expect many of those folks would suggest you have no legit beef with the tax system.

Fact is that most people can justify feeling "cheated" to themselves.

 

[Kangaroo]

Purchasing a home allows you to take so many more deductions than if you've been taking the standard deduction.

Prior to owning a home, you may have had a bunch of deductions, but they weren't above the standard deduction. Now with a home, you get to take those deductions in addition to the home deductions.

Some deductions post-home purchase
home office
real estate taxes
mortgage insurance
State sales tax (Texas-only and that's only until they expire after 2010, I think)
Charitable deductions
Miscellaneous deductions
Medical expenses (since I'm assuming you're a healthy dude, you won't qualify)

As to what you might or not get on your 2009 return, that's anybody's guess.

You have to have serious health issues to deduct I saved everything I payed out one year unless you have bad insurance or no insurance or a couple major surgeries or something like cancer you can not even get close to the deductions have to ou expenses must add up to more than 7.5% of your adjusted gross income

I am lower middle class status as it is and I could not even hit that mark.

FSA accounts are better

 

[WoodysGirl]

You have to have serious health issues to deduct I saved everything I payed out one year unless you have bad insurance or no insurance or a couple major surgeries or something like cancer you can not even get close to the deductions have to ou expenses must add up to more than 7.5% of your adjusted gross income

I am lower middle class status as it is and I could not even hit that mark.

FSA accounts are better

Yep, I found that out myself. I wasn't ill, but I was supporting someone who was. Never even sniffed the 7.5% mark.

 

[Kevinicus]

Oh I see. It is OK for you to cheat because you feel you are being cheated. I expect that many on welfare feel they've been cheated a bit along the way as well. Many come from neighborhoods with deteriorating schools that can't attract decent teachers, live in high crime areas where the police look the other way. Whether you agree that they are cheated or not is irrelevant. I expect many of those folks would suggest you have no legit beef with the tax system.

Fact is that most people can justify feeling "cheated" to themselves.

Well I don't think anyone should be eligible for any credit, not for a house, not for a kid, not for anything. I don't think it's too much to ask for laws to apply to everyone and not focus on or exclude certain groups.

 

[5Stars]

Well I don't think anyone should be eligible for any credit, not for a house, not for a kid, not for anything. I don't think it's too much to ask for laws to apply to everyone and not focus on or exclude certain groups.

Some info for vets that have a disability...

In some states and counties if you have a 30% or more (maybe less) claim you can go to your county offices and get a paper that will allow you 30% off of your home taxrs, or use that amount for registering your car...or some other tax. But you get a credit.

Look into it.

Carry on...

 

[AbeBeta]

Well I don't think anyone should be eligible for any credit, not for a house, not for a kid, not for anything. I don't think it's too much to ask for laws to apply to everyone and not focus on or exclude certain groups.

So, let me get this straight. You are in favor of raising your own taxes then? If you are going to take a moral stand then just fill out your 1040 EZ and don't take the deductions. If you do so I will personally thank you for helping to set our economy straight.

 

[5Stars]

So, let me get this straight. You are in favor of raising your own taxes then? If you are going to take a moral stand then just fill out your 1040 EZ and don't take the deductions. If you do so I will personally thank you for helping to set our economy straight.

:laugh2: :laugh2: :laugh2:

SHUT UP

 

[Kevinicus]

So, let me get this straight. You are in favor of raising your own taxes then? If you are going to take a moral stand then just fill out your 1040 EZ and don't take the deductions. If you do so I will personally thank you for helping to set our economy straight.

I'm for eliminating deductions and credits. Lower taxes on the wealthy and raising taxes on the poor. If you want to call it a flat tax, or the fair tax or whatever. If that means I will pay more than I do now, then so be it, that's fair. But I'm not sure that my taxes would go up.

 

[AbeBeta]

I'm for eliminating deductions and credits. Lower taxes on the wealthy and raising taxes on the poor. If you want to call it a flat tax, or the fair tax or whatever. If that means I will pay more than I do now, then so be it, that's fair. But I'm not sure that my taxes would go up.

You want to take MORE money away from the poor?

Ummm, isn't that how revolutions start?