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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA 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

This answer was rated:

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

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 and other Tax Specialists are ready to help you
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.