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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 10364
Experience:  Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
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We are in the process of looking for a home in Colorado. My

Resolved Question:

We are in the process of looking for a home in Colorado. My wife and i are retired.

Do we qualify as a first time home buyer: Last bought a home in 2007 and sold in short sale 2011
Tax advantages/disadvantages of withdrawing bulk sum for down payment from deferred retirement account versus larger monthly payment for a home. Any tax credits or exemptions on a down payment
Submitted: 7 months ago.
Category: Tax
Expert:  Megan C replied 7 months ago.

MyVirtualCPA :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

MyVirtualCPA :

Unfortunately, there is currently no first time homebuyer tax incentive

MyVirtualCPA :

Also, you're going to be better off financially borrowing more for the house rather than taking a distribution from a tax deferred account.

MyVirtualCPA :

You would only be able to take $10,000 penalty free, and only if you have never used the $10,000 before.

Customer:

I can withdraw from the retirement account penalty free

MyVirtualCPA :

You will owe income tax on the entire withdrawal amount

MyVirtualCPA :

Only $10,000 - and only if you have never used retirement funds to purchase a home

Customer:

Ok so no tax break on lump sum down payment

MyVirtualCPA :

No, there's no tax break on a lump sum down payment

Customer:

OK thanks

MyVirtualCPA :

You're welcome. IS there anything else that I can assist you with today?

Customer:

no

MyVirtualCPA :

Okay if you would please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 10364
Experience: Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
Megan C and 3 other Tax Specialists are ready to help you
Expert:  Megan C replied 7 months ago.
Thanks, Robert for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security needs. It was a pleasure working with you today.

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