| Author | Message | ||
     Pkforbes87 |
Submitted an amended 2008 tax return today, and am looking forward to my $8000 check from Mr. Obama who convinced me to buy my first home this year. What a grand deal. I hope the housing market is being stimulated as much as I am. In 3 to 6 weeks I should be debt free other than a mortgage, and free up some cash to begin rebuilding an S3. | ||
| Jramsey |
Put the $8,000 towards the principal on your new home. | ||
| Pkforbes87 |
I'm only gonna be here for 4 years, paying extra on the house would be a waste of time compared to paying off credit cards. Credit cards are evil by the way.. I had to learn that the hard way. | ||
| Vampress |
CC-If you look closely, they have a little satanic watermark on them somewhere I think  | ||
| Sayitaintso |
If they dont have one, they damn well should. | ||
| Johnnylunchbox |
Nothing wrong with credit cards. You just have to pay them off every month. Oh, and don't spend more than you can afford. | ||
| Pkforbes87 |
Parts for Betty are on credit cards  Not so smart on my part but I do love that bike. | ||
| Sayitaintso |
Yep Johnny, but it only takes one mistake with those things to hurt you real bad} for a long time. Used right they can save you quite a bit of money (cash back, 5% on $3 a gallon gas adds up quick) but the the CC companies are betting on you screwing up. And with the profits those guy make, it seems like a good bet. | ||
| Xl1200r |
Pkf - I just closed on my first house last week - how did you amend your return? My brother's girlfriend is a CPA and thinks I should have a CPA do my taxes, but her friend wants to chanrge me like $50-100 to do it. I did mine on Turbo Tax, can I just amend them on there? | ||
| Pkforbes87 |
I had my original 08 taxes done free on base, but went to H&R Block for the ammendment. Cost me $12 and about 45 min. You'll need your settlement statement and your original 08 return. Efiling and direct deposit are not available yet when filing for the first time home buyer tax credit. Btw, if you made more than $75k in 08 but will make less for next years taxes, you'll get more $$ back by waiting until your 09 return for the credit. | ||
| Xl1200r |
I wish I made more than $75k in '08... Thanks for the heads up. $12 is better than $50. | ||
| Xl1200r |
Pk - do you know what forms you had to send in? I was able to do it on Turbo Tax, but it doesn't say what I should mail in. I'm thinking just the 1040X and 5405??? | ||
| Randlepmcmurphy |
This whole housing "credit" is a crock. Like was said earlier you need to look for the "little satanic watermark". The $8000 isn't free money like they try to tell you. It is a no interest loan that you will pay back at $500 a year through your taxes for the next 16 years. Seems like a decision that should not be entered into without extensive research. | ||
| Swordsman |
I've had three different credit cards over the years, and not one company has made a cent off of my account yet. Treat it like a debit card, and you'll be in good shape. Luckily I haven't had any crisis that the savings account couldn't handle. ~SM | ||
| Sifo |
I've had three different credit cards over the years, and not one company has made a cent off of my account yet. They make money off of every purchase you make with the card. The big money comes when you can't pay your bill at the end of the month though. You are right to treat it like a debit card. I've used mine once for a major purchase that I couldn't cover that month without some serious juggling of investments. Paid it the next month though. Carrying CC debt is just plain evil! | ||
| Xl1200r |
This whole housing "credit" is a crock. Like was said earlier you need to look for the "little satanic watermark". The $8000 isn't free money like they try to tell you. It is a no interest loan that you will pay back at $500 a year through your taxes for the next 16 years. Seems like a decision that should not be entered into without extensive research. Incorrect. The 2008 First Time Homebuyer Credit was a $7500, no interest loan paid back over 15 years. The 2009 First Time Homebuyer Credit is a straight-up $8,000 credit to your federal income tax that doesn't need to be paid back unless you sell the house, or it becomes something other than your primary residence within 3 years. | ||
| Liquorwhere |
The 2009 First Time Homebuyer Credit is a straight-up $8,000 credit to your federal income tax that doesn't need to be paid back unless you sell the house, or it becomes something other than your primary residence within 3 years. You never get something for nothing, some where some way you will pay for it, or others will be paying for it, regardless of what you are told, it will effect you somewhere, somehow, it just remains to be seen where and how. All of these "credit rebates" "stimulus" BS needs to go away, it will only put us deeper in..... | ||
| Xl1200r |
Liquor - I agree with you. You're going to pay for it, I'm going to pay for it, everyone is going to pay for in the name of higher taxes down the road. But we're all going to pay whether we take it or not, so may as well if you can. I think all these bailouts and credits are bogus as well, but they're happening, so you can either get your peice knowing you're going get it up the ass later on, or not take a piece and get it up the ass anyways. | ||
| Sayitaintso |
I've used mine once for a major purchase that I couldn't cover that month I did the same thing ONCE. Put my books and tuition on a credit card with every intention of paying it at the end of the month...... In the mean time I pissed the money away on a new computer and it took almost a year to get back on even footing (that was way before the 0% balance transfer game became possible). I learned my lesson and have been paying the bill in full each month and riding the cash back bonus ever since Discover first came came out. Now there are better deals out there than Discover for cash back bonuses. | ||
| Sifo |
Congrats Pkforbes87! It is odd seeing this kind of program going on so soon after the real estate bubble popping largely from these programs. One of the big problems is that it sets up the new homeowner up with little or no investment of their own. This makes it very easy to walk away as soon as things get a bit tough. This was done by rich and poor alike. When you invest 10 - 20 percent up front you are much less likely to walk away from it. None of that was intended to say anything negative about Pkforbes87. Buying your first home is a great thing and I wish him the best with it. I'm just surprised these loans are still available. | ||
| Xl1200r |
Sifo - keep in mind that you can't get the credit until AFTER you close on the house, so you can't use any of it for closing costs or a down payment. As far as having this program so soon after the housing bubble busrt, borrowers still have to follow tightened banking practices now - no more borrowing 110% of the value and B.S. like that. | ||
| Sifo |
Xl1200r, I hope you are right about that. I have not kept up with what's changed in the last 5 years since I got out of the mortgage business. I hope this isn't one of the grant deals where you can get a grant for the down payment with a written promise to pay back the grant with the money from the first time buyers credit AFTER the closing (all done at the closing table). I would certainly hope the 110% deals are gone for good. That was just insanity. Sadly I tend to be pretty skeptical of things like this. Bad ideas have a way of coming back with a slightly different twist and a shiny new name. Hope I'm wrong on this one. | ||
| Pkforbes87 |
Xl, yeah I think the 1040X and 5405 are the only two that need to be sent in for the amendment. "It is a no interest loan that you will pay back at $500 a year through your taxes for the next 16 years." Randle, even if you weren't mistaken, are you trying to convince me that I should turn down a 15 year interest free loan of $7500? If that's what was offered instead of the $8000 credit then I'd jump at it just as fast too. I agree that someone somewhere has to pay for my tax credit, but that doesn't change the fact that it's available and I'd be foolish not to use the opportunity. In my line of work I don't think I'll lose sleep over being a burden to society. God willing, I'll be earning my keep for another 16.5 years. Then I can retire with pension and REALLY start to freeload off of the general taxpaying public | ||
| Randlepmcmurphy |
I stand corrected, I was unaware that there was a change from 08 to 09. I say to each there own but I can tell you that the government never gives anything for free. There is always something attached to it. To me it doesn't seem like a good idea to climb into Uncle Sams pocket. My biggest concern would be a job loss or pay reduction. This $7500 dollars is getting paid back regardless. When you make 60k plus a year $500 at tax time probably won't seem like much. If you go from that to making 30k, $500 dollars could mean you don't pay rent in April when taxes come due. I am by no means an economic expert and no angel when it comes to finances. I have my share of debt, but when I see all these credits getting thrown around along with the massive amounts of bailout money. I worry that we as a nation are mortgaging our future prosperity for immediate short term relief of financial stress. | ||
| Xl1200r |
Sifo - I just went through this very process and just filled out the tax forms. You cannot, under no circumstances, file for the tax credit without having closed on the house you bought. There are some banks (or so i've read, mine didn't offer this) that will give you a short-term loan for the $8000 that you pay back when you get it, but that's heresay from where I'm sitting. I think the program isn't bad - it's going to do one of three things, again, because people can only use it after they buy the house 1 - They'll go out and buy $8000 worth of stuff, which should give some type of boost to the economy on some level 2 - They'll sink $8000 into home improvements, still boosting the economy but also helping to increase property values for thier own home and those around them 3 - They'll pay off some debt, freeing up money on a monthly basis that they can then use for other spending For me, I'll be keeping about $2000 worth to buy some things for myself that I've wanted for a while (a drummer for the CR and a dog), and the other $6000 is going into the house. | ||
| Sifo |
Looks like one of those times I'm glad to be wrong. There's a lot of good things that come from promoting home ownership. Things just got way out of balance for a while and the correction is proving quite painful for most everyone. | ||
| Xl1200r |
I'm just glad that I was in a position to take advantage of it. I literally got my tax refund and my bonus in March, put them together and said, "Hey, this is a down payment on a modest house". A month later I had an accepted offer. My area is a little unique - prices didn't fall off quite like they did in other areas around the country, and foreclosures aren't as common as the news would have you believe. Being in Albany, we so many State workers that our local economy typically weathers these downturns much better than other places because we have such a high number of folks who have EXTREMELY secure jobs. In fact, many local business (car dealers especially) can feel the posotive impact when the union negotiates a new contract and everyone gets bonuses and raises and what not, and all the sudden they sell twice as many cars in a month than they did the year before. Crazy stuff. | ||
| Sayitaintso |
I'm just glad that I was in a position to take advantage of it. I literally got my tax refund and my bonus in March, put them together and said, "Hey, this is a down payment on a modest house". A month later I had an accepted offer. My area is a little unique - prices didn't fall off quite like they did in other areas around the country, and foreclosures aren't as common as the news would have you believe. Being in Albany, we so many State workers that our local economy typically weathers these downturns much better than other places because we have such a high number of folks who have EXTREMELY secure jobs. In fact, many local business (car dealers especially) can feel the posotive impact when the union negotiates a new contract and everyone gets bonuses and raises and what not, and all the sudden they sell twice as many cars in a month than they did the year before. Crazy stuff. Tallahassee is the same way.... State government and two universities...very stable workforce, but growth sucks. Its really is crazy, folks here fight any and all growth. Seems like most folks here would be happy as hell if things went back to the good ole days of the 50's. | ||
| Xl1200r |
There's some fight for growth in the town I just moved to, but it's inevitable and it's going to boom in not too long. I'm hoping that, combines with super easy commute to Albany and a great school districy will help property values along. We also have something on the order of a dozen colleges in the area - at least 5 or 6 are big time schools. | ||
| Aesquire |
I bought in '08, so I have to go for the loan. Still, free money. ( not counting my taxes....LOL ) I missed deductions the first time around on my '08 taxes, so it's not even more work to get, since I have to re-file anyway. $7500 Also going for the "clunker crush" $4500 trade in on a better mileage car. The $4800 stimulus tax credit to buy new car. The $1300 tax credit to buy uber-mileage car. And, last & least, whatever I can on the 30% UP-To-$1300 energy star credits on the home. ( new fridge after old one died, HVAC improvements, etc.) I KNOW I pay for all this ( as do you ) through taxes, but they all are VOLUNTARY, POSITIVE incentives to "do the right thing" as perceived by our easily bribed Congress. ( easy if you are rich ) I would be very unhappy with a "crush the clunkers" program that had jack booted thugs taking my neighbors bitchin' Camaro, or denied me the pleasure of cruising in a '68 Charger etc. I fear that the nationalized health care system desired by this admin. will have all the bad points of existing systems, and more restrictions on care. You know, when a "civil servant" decides I might as well die, since I'm old. ( as opposed to the guy at Blue cross deciding the same thing...) |
