Will i get $8,000 back if i buy a house?
I live in CA and am planning on buying a house. Will I get back $8,000 on my taxes and do i have to pay it back.
- acermillLv 71 decade agoFavorite Answer
The tax credit to which you refer is a maximum of $8,000 or ten percent of the purchase price of the house, whichever is less. As long as you are below the income threshold which starts to reduce the tax credit and you are a qualified 'first time buyer', you will be able to claim the full credit available.
If Reginald is an accountant, I am glad that he's not MY accountant. He's incorrect. The credit is not limited by what your tax load comprises. As example, if you over withheld your income taxes and are due a regular refund of $500 for the overpayment, you would get a refund of $8500 if you bought a qualified purchase.
For more information, read IRS Form 5405 and its instructions.Source(s): http://www.irs.gov/pub/irs-pdf/f5405.pdf
- Prairie GirlLv 71 decade ago
If you buy a house in 2009, and you are a first time home buyer, and you make less than $75,000 a year you will get a check for $8,000.
You will not have to pay it back as long as you live in the house for 3 years. If you sell it or rent it before 3 years are up you have to pay back the entire $8,000. My daughter got her check a month ago for a house she bought in Jan.
- 1 decade ago
Yes, but only if you are first time buyer. Meaning you haven't owned a home in 3 1/2 years. You do not have to pay the $8,000.00 back.
- 1 decade ago
Do your research!
It is not a tax credit despite what people tell you, it is a "refundable" tax credit. Meaning they will only refund you 8,000 if you have a tax liability of 8,000 in taxes. (i.e. make 56,000 dollars gross income) If you only make say $40,000 and have a tax liability of 6,000 they will only give you 6,000.Source(s): I know cause I looked into it myself and I am an accountant.