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Ok still have questions about this its still unclear how to handle it. we bought a house it was 61000.00 we paid 1000.00 down. this is the first home we have ever bought and was wondering if we qualify for the first time home buyers program and since we bought it from an individual and financed it throught them and not a company could we use it on our taxes and if so how and what do we need to do this.

3 Thoughts on TAX QUESTION REGARDING OUR NEW HOME?
  1. Reply
    Ski_Bum
    February 17, 2014 at 2:32 am

    No tax breaks for you only maybe the mortgage interest deduction if you itemize.

  2. Reply
    Gem
    February 17, 2014 at 2:54 am

    The down payment is not counted on income taxes, doesn’t matter if you buy it with a land contract (which is exactly what you are doing) or through a mortgage company.

    The only home expenses you can claim on your federal income taxes are property taxes and interest paid to the lender. And, those are only claimed IF the total of your itemized deductions is larger than your standard deduction. For a $ 61,000 mortgage & house, I really doubt your taxes & interest will be greater than the standard deduction ($ 10,900 for married, $ 5,400 for single).

    Good luck.

  3. Reply
    ninasgramma
    February 17, 2014 at 2:55 am

    The fact that you have owner financing on your home does not disqualify you from any tax benefit.

    The downpayment is not deductible. If you itemize you may deduct the mortgage interest and property tax. If you know the amount of the mortgage and the interest rate, you can go to calculators on the Internet to figure your interest, or your tax preparer can figure your interest. In some cases, the person who holds your mortgage will figure your interest.

    You will need the Social Security Number, name, and address of the mortgage holder. He is required to provide this to you if you request.

    If you do not itemize you may still take up to a $ 1,000 additional standard deduction for property taxes you paid.

    As for the homebuyers’ credit, you may be eligible for this if you purchased the home after April 9, 2008. The credit is an interest-free loan of 10% of your purchase price, in your case $ 6,100. If you qualify you will be paid $ 6,100 on your tax return. You repay this loan over 15 years in payments of $ 407 starting in 2011.

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