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Tax Rebate Questions
What is a tax rebate?
rebate is money that is remitted by the government to a tax payer who has overpaid the
Internal Revenue Service
are calculated during the filing of a tax return and is common in the United States. Below are some of the most commonly asked questions about tax rebates answered by the Experts.
If a person bought a house that qualified for the 2010 tax rebate for $51,000 (first time homebuyers tax credit) and borrowed another $11,800 for repairs and added$2,894 as closing costs, what is the amount that they could claim for the tax credit?
This may depend on a few factors. Typically, the homebuyer’s tax credit is calculated depending on the purchase price of the property. This, in other words, is called the “adjusted basis” on the date of purchase. The additional amount of $11,800 could be included in the adjusted basis if it appears in the Department of Housing and Urban Development (HUD-1) closing statement. Alternatively, if the repairs were completed before the closing date, they would be considered eligible for the credit. However, this may not be easy and the IRS may challenge this because the repairs would ideally not be shown in the HUD-1forms.
If a person made more than $3,000 with their retirement and more than $3,000 with their Social Security disability which they paid federal taxes on, what would their tax rebate be?
In most cases, if income has been earned solely from retirement and social security benefits, a person may be eligible to receive $300 in tax rebates.
Would a person be eligible to get a first time homebuyer tax rebate check for a home that was purchased in April of 2004?
This may not be possible as first time homebuyer credit for a house bought in 2004 did not exist at that time.
If a person files an extension to file their returns, do they still qualify for the federal tax rebate?
In most cases, if an extension is filed for a particular tax year the Stimulus payment will be received when the following year’s tax return is filed.
If a person bought a manufactured home that qualified for a tax rebate refund in 2009, when would they have needed to fill out the application for this rebate? And would this have been a finite fund?
Typically, the Internal Revenue Service does not have limited funds for tax rebates, although certain states offering first homebuyer credits may place a limit on the funds available. As long as the first time homebuyer qualified for and purchased a home prior to the 11/30/09 deadline they should have received this credit. They wouldn’t have had to fill out an application and the credit would have been sent in the form of a tax
. This money could have been claimed in two ways. One way is when the 2009 tax return was filed and the credit was applied for. Alternatively, the individual could have amended their 2008 return and then claimed the money. The reasoning behind the tax rebate is that money given back to the
could fuel the economy. For instance the government authorizes a tax rebate that gives money to millions of Americans, who in turn spend the money at the store, which gives the store money to buy more goods and provide jobs and so on down the line. However it is debatable on whether the tax rebate really works, and who better to answer these questions, and many more like them than the Experts.
Recent Rebate Questions
I've been considering getting a solar panel system but have
I've been considering getting a solar panel system but have heard different things from the solar panel company and on the internet about the order in which federal, state, county incentives are applied. I live in Prince George's county Maryland so we have all three. The federal incentive is 30% deductive from the "cost" of the system. Is this the cost of the system before or after state and county incentives are applied? For example, if we have a $10,000 system and state and county deductions are $1000 each, then we would be better off if the 30% federal deduction were applied first giving us a total cost of $5000.00 whereas if the state and county deductions are applied first, then our cost is $5600. Solarestimate.org is a website for estimating solar costs. It is clear from this website and a blog I've read at http://blog.recsolar.com/2014/01/how-to-calculate-the-30-federal-investment-tax-credit-for-solar/ that the state and local deductions need to be applied before the federal incentive yet my solar installer disputes this claim.
The other question I have relates to whether income in the form of SRECs is taxable.
I've read up on http://www.srectrade.com/blog/tag/are-srecs-taxable but the situation still remains unclear. I'd like to use SRECs to pay down the cost of a new solar panel system and I'm still unclear over whether the income from SRECs will either be taxed or reduce the cost basis that determines the federal incentive.
I have a investment property that I have rented out
I have a investment property that I have rented out for many years and when I sell it I will have a 500k loss. I'm told I can offset that loss under section 1231 against my wages and there is a look back for 5 yrs. at a marginal tax bracket of 37%, do I need to have a tax bill in that year of 500k to get the full reduction or I'm told there is a look back for 5 yrs so curious how the calculation works.
Can a nol carryforward eliminate current tax liability
can a nol carryforward eliminate current tax liability
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