Best CPA tips about first time home buyer tax credit
By: Jonathan Medows, CPA | Posted: 09th December 2009
If you are a first time home buyer how can you benefit from this on your tax returns? As a CPA in New York, I can just tell you that whether you plan to build your home or you are ready to move into your home you will want to get all the benefits of being a first time home buyer and receive the credit due to you on your refund.
There is a lot of useful information about owning your own home or buying your home for the first time. Here are a few simple tips that will help you make the most of your first time home buyer credit.
If you are building your home in Manhattan and you plan to occupy it in the next year you will not be able to claim the first time homebuyer credit to use the money toward your down payment or building costs. In order to qualify for the first time homebuyer credit you will need to actually purchase the residence. If you are building the home you will need to have it completed so you can move in before you can claim the tax credit. Things can happen and plans do not always fall through so that is why you are not allowed to claim this credit until you are actually living in the home.
If you bought your home early this year and have already filed your last years' tax return New York you may wonder if you will need to repay the first time homebuyer credit. The answer to that is ‘no, you don't'. If you qualify for the first time homebuyer credit the first day that you move into that home is considered your purchase date. You can use this date when you are filing your tax returns.
If you are in the process of buying your home in New York, you may want to file for first time homebuyer credit for this tax season NY so you can take advantage of the down payment refund. Unfortunately you cannot take advantage of the credit this year. You must finalize the home purchase before you can benefit from the refund. But a New York CPA can help you with the tax preparation New York.
If you file for a home credit and was granted it this past year you do not need to pay the credit back unless you no longer live in the residence before 36 months is up from the day that you purchase the home. If this is the case then the full amount of your credit will become due. You need to occupy the home at least 36 months in order to keep the credit you were issued.
If you already own your home in New York and you are considering buying another one you may wonder if you need to sell your current home in order to qualify for the homebuyer tax credit. But as long as you meet the requirements listed you do not need to sell your home before you can receive this tax credit.
These are just a few of the most important home buyer tips that a lot of people question. If you want to learn ore about home buyer credits then you will want to speak to a CPA New York about them.
Jonathan Medows, CPA, MBA is the Managing Member of MEDOWS CPA, PLLC, a boutique New York CPA firm serving the needs of individuals, freelancers, self employed individuals & small businesses. To see how he can help you reduce your tax liability and keep you in tax compliance please visit his website:
Medowscpa.com
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Tags: money, tax credit, tax returns, tax return, first time home, time home buyer, first time home buyer, manhattan, tax preparation