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Old January 7th, 2009, 10:58 PM   #1
Monkeyevil
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Default First-Time Home Buyer Tax Credit

http://www.federalhousingtaxcredit.com/index.html

So it's a 7,500 0% interest loan, from the IRS, with payments of $500 a year coming due 2 years after the credit is taken.

I'm not sure if it's a good idea to take this or not... On one hand I can put the cash in a money market account and earn free money... on the other hand it seems silly.
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Old January 7th, 2009, 11:04 PM   #2
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Looks like I may start looking for a house earlier than expected.
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Old January 7th, 2009, 11:17 PM   #3
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PM Chris Rogers on this site.... he is the man to talk to
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Old January 8th, 2009, 06:41 AM   #4
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Quote:
Originally Posted by Monkeyevil View Post
http://www.federalhousingtaxcredit.com/index.html

So it's a 7,500 0% interest loan, from the IRS, with payments of $500 a year coming due 2 years after the credit is taken.

I'm not sure if it's a good idea to take this or not... On one hand I can put the cash in a money market account and earn free money... on the other hand it seems silly.
Dude, if you don't take advantage of that, you're silly. Think of it as a little bit of work to get free money.

$7500 makes a hell of a nice "emergency" fund for a new homeowner and if you never use it, you will have made the money on the interest. You could also stick most of it in a Roth IRA and the rest in a health savings account.

Lots of benefits for filling out some forms.
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Old January 8th, 2009, 03:51 PM   #5
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Originally Posted by ScOoTeR View Post
Dude, if you don't take advantage of that, you're silly. Think of it as a little bit of work to get free money.

$7500 makes a hell of a nice "emergency" fund for a new homeowner and if you never use it, you will have made the money on the interest. You could also stick most of it in a Roth IRA and the rest in a health savings account.

Lots of benefits for filling out some forms.
I don't like the idea of our government handing out interest free loans.
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Old January 8th, 2009, 03:51 PM   #6
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I don't like the idea of our government handing out interest free loans.
Then don't participate.
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Old January 8th, 2009, 04:14 PM   #7
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I don't like the idea of our government handing out interest free loans.
They're trying to get people to spend money an circulate it to boost the economy.
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Old January 8th, 2009, 05:34 PM   #8
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I don't like the idea of our government handing out interest free loans.
So you're going to protest by not taking advantage of it? Silly, especially if you can benefit from it. And giving first-time home buyers the loan isn't exactly handing money out - it can mean you can get into a cheaper home and have money to fix problems (roof, or windows or whatever).

I would much rather see you get an interest free loan than a bank get money from the TARP, then turn around and give executives bonuses.
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Old January 8th, 2009, 05:58 PM   #9
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I missed it by a month. Damnit.
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Old January 8th, 2009, 07:37 PM   #10
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Savings Schedule (2009)
If you save for 15 years...
Start with a balance of $7,500.00
Earn an Annual Interest Rate of 9% (compounded Annually)
Contribute $.0 at the end of every Year
Year # Beginning
Balance Earnings Contribution
Amount Ending
Balance
1 7,500.00 675.00 .0 8,175.00
2 8,175.00 735.75 .0 8,910.75
3 8,910.75 801.97 .0 9,712.72
4 9,712.72 874.14 .0 10,586.86
5 10,586.86 952.82 .0 11,539.68
6 11,539.68 1,038.57 .0 12,578.25
7 12,578.25 1,132.04 .0 13,710.29
8 13,710.29 1,233.93 .0 14,944.22
9 14,944.22 1,344.98 .0 16,289.20
10 16,289.20 1,466.03 .0 17,755.23
11 17,755.23 1,597.97 .0 19,353.20
12 19,353.20 1,741.79 .0 21,094.99
13 21,094.99 1,898.55 .0 22,993.53
14 22,993.53 2,069.42 .0 25,062.95
15 25,062.95 2,255.67 .0 27,318.62





Not to bad for "FREE" money......

Last edited by DaHos; January 8th, 2009 at 07:41 PM.
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Old January 8th, 2009, 07:38 PM   #11
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And adjust your withholdings and you could still "pass" on $500 repayment.....
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Old January 8th, 2009, 08:37 PM   #12
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well damn i just got a house in oct
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Old January 8th, 2009, 08:47 PM   #13
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Quote:
Originally Posted by DaHos View Post
Savings Schedule (2009)
If you save for 15 years...
Start with a balance of $7,500.00
Earn an Annual Interest Rate of 9% (compounded Annually)
Contribute $.0 at the end of every Year
Year # Beginning
Balance Earnings Contribution
Amount Ending
Balance
1 7,500.00 675.00 .0 8,175.00
2 8,175.00 735.75 .0 8,910.75
3 8,910.75 801.97 .0 9,712.72
4 9,712.72 874.14 .0 10,586.86
5 10,586.86 952.82 .0 11,539.68
6 11,539.68 1,038.57 .0 12,578.25
7 12,578.25 1,132.04 .0 13,710.29
8 13,710.29 1,233.93 .0 14,944.22
9 14,944.22 1,344.98 .0 16,289.20
10 16,289.20 1,466.03 .0 17,755.23
11 17,755.23 1,597.97 .0 19,353.20
12 19,353.20 1,741.79 .0 21,094.99
13 21,094.99 1,898.55 .0 22,993.53
14 22,993.53 2,069.42 .0 25,062.95
15 25,062.95 2,255.67 .0 27,318.62





Not to bad for "FREE" money......
Ok, your chart looks really pretty with lots of cool numbers. Until you see the part about the 9% annual interest rate. You show me ANY bank that is paying 9% to anyone for anything... My credit card rate is charging me less than 3% at this point.
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Old January 8th, 2009, 08:53 PM   #14
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Yea a CD could yield ya about 3 to 3.5 on a good day.....Sticking it in a M Fund should get ya the 9.......................

Just got my statement today and I didn't lose anything this mouth, actually made a few bucks....Yip, yip, yahoo......were on out way back !!!!!

Last edited by DaHos; January 8th, 2009 at 09:04 PM.
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Old January 8th, 2009, 08:58 PM   #15
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Damm, We bought in Jan '08
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Old January 8th, 2009, 09:28 PM   #16
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so how does it work? from what i read, its just a tax break, for when you file taxes.. and that it doesnt actually put money in your pocket? someone fill me in? as i am actually looking into buying my first home..
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Old January 8th, 2009, 10:01 PM   #17
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so how does it work? from what i read, its just a tax break, for when you file taxes.. and that it doesnt actually put money in your pocket? someone fill me in? as i am actually looking into buying my first home..
They cut you a check for 10% of your purchase price up to $7,500.

You pay it back $500 a year on your tax returns starting two years after you take the credit.
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Old January 8th, 2009, 10:50 PM   #18
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Quote:
Originally Posted by Monkeyevil View Post
They cut you a check for 10% of your purchase price up to $7,500.

You pay it back $500 a year on your tax returns starting two years after you take the credit.

Gotcha. i didnt see the part, where it said they will give me a check, BONUS!

the house im looking at needs new windows. and i dont have the boot to pony up, so i was trying to find something else. im applying! haha
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Old January 8th, 2009, 11:20 PM   #19
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Quote:
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They cut you a check for 10% of your purchase price up to $7,500.

You pay it back $500 a year on your tax returns starting two years after you take the credit.
Do it.
I'm currently looking for any bullshit government grant I can find to pay my taxes with.
I'm so fucking sick of being extorted.
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Old January 9th, 2009, 12:21 AM   #20
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Does anyone have anymore info on programs like this, we are closing on a house in the next few weeks.

The more I read this sounds great, for someone who is buying now:

If Iím qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Last edited by Rainbird1099; January 9th, 2009 at 12:30 AM.
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