How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13974
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

i purchased a mobile home in 2009 after being divorced for

Resolved Question:

i purchased a mobile home in 2009 after being divorced for 2 yrs and this is my second home i am released from the 1st home do i have any tax credits
Submitted: 7 years ago.
Category: Tax
Expert:  Robin D. replied 7 years ago.

HelloCustomer

Thank you for using Just Answer.

You may qualify as a First Time Home buyer even if this is the second time you have purchased a home in your lifetime.

For the purpose of this First time Homebuyer tax credit, a first-time homebuyer is defined as someone who has not owned a primary residence in the three-year period ending on the date of purchasing the home. So if it was 3 years since you owned the previous home the First time Homebuyer Credit would help you. For Jan - Nov 2009: up to $8,000 (10% of purchase price) and, the credit does not need to be paid back.

If you do not meet the timeframe between owning the first and replacement home then the next credit may be for you.

The Long term Resident Home Credit;

People who already own a home can qualify for the tax credit if they buy another home. To qualify, individuals needs to have owned and lived in their residence for at least five consecutive years in the eight-year period that ends on the purchase date of the new property.

Long-term residents purchasing a new home have a lower maximum credit of $6,500.

The credit has a very limited life-span. Individuals will need to purchase a residence after April 9, 2008, and before May 1, 2010. Qualified servicemembers must purchase a residence before May 1, 2011. A primary residence is a residence in which an individual lives most of the time. A primary residence can be a house, condominium, co-operative apartment, houseboat, or mobile home.

I sincerely XXXXX XXXXX information is useful,

Robin D. and other Tax Specialists are ready to help you
Customer: replied 7 years ago.
i just found out techinically i m still on the mortgage which was purchased on 2002 so do i qualify for a tax cridit and excactly what does that mean
Expert:  Robin D. replied 7 years ago.

Hello again,

 

A credit is an amount subtracted from your tax liability. If you have liability of $1000 and you have a credit of $1000 then your liability would drop to $0 and you would receive all your withholding back in the form of a refund. The above mentioned credits are not Refundable credits so they could only reduce your liability to $0. Example your credit was $1200 instead of $1000, your tax liability would still only drop to $0 and the additional $200 would not be given to you as a refund.

Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.

 

I have not found where the previous home must be home only that you are replacing your main home.

Robin D. and other Tax Specialists are ready to help you