Goodbye bras of Sears, dear friends.
Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts
15 April 2010
26 January 2010
First-Time Homebuyer Credit for This Tiny House?
Dear Readers,
I'm looking into whether this home is eligible for the First-Time Homebuyer Credit, which was introduced in the Housing and Economic Recovery Act 2008, and has been extended under the American Recovery and Reinvestment Act of 2009. It is a refundable tax credit for qualified purchases made in 2009.
The credit is 10% of the purchase price of the home, with a maximum available credit of $8,000 for homes bought in 2009. The credit is claimed on Form 5405.
Anyone considering this credit should consult a tax-preparer to discuss the particulars of their situation. I am addressing the issue here, nevertheless, because I have not found information on the tax credit in relation to "tiny houses" elsewhere. I'd like to raise the discussion among people building their own small mobile homes.
That said, I have two main points.
1) Because most of my building materials have been from free sources or scavenged, my overall building costs are low. In turn, 10% of the "purchase price of the home" will of course also be low. THIS IS GOOD, though it does mean even if I could get the refund it would be somewhere in the $300 dollar range, as opposed to the $8000 available to people who spend $80,000 for a home. Just want to put things in perspective.
2) When I learned mobile homes and house boats were considered "homes" to the IRS and soon after filled out Form 5405, I thought I'd found out something exciting to share with other people building mobile homes similar to mine.
In my research today, I found out that the legislative changes that in November 2009 expanded and extended the credit also added documentation requiring that the 2009 tax return must be filed in paper — not electronic — and attach Form 5405, with one of the following:
I'm looking into whether this home is eligible for the First-Time Homebuyer Credit, which was introduced in the Housing and Economic Recovery Act 2008, and has been extended under the American Recovery and Reinvestment Act of 2009. It is a refundable tax credit for qualified purchases made in 2009.
The credit is 10% of the purchase price of the home, with a maximum available credit of $8,000 for homes bought in 2009. The credit is claimed on Form 5405.
Anyone considering this credit should consult a tax-preparer to discuss the particulars of their situation. I am addressing the issue here, nevertheless, because I have not found information on the tax credit in relation to "tiny houses" elsewhere. I'd like to raise the discussion among people building their own small mobile homes.
That said, I have two main points.
1) Because most of my building materials have been from free sources or scavenged, my overall building costs are low. In turn, 10% of the "purchase price of the home" will of course also be low. THIS IS GOOD, though it does mean even if I could get the refund it would be somewhere in the $300 dollar range, as opposed to the $8000 available to people who spend $80,000 for a home. Just want to put things in perspective.
2) When I learned mobile homes and house boats were considered "homes" to the IRS and soon after filled out Form 5405, I thought I'd found out something exciting to share with other people building mobile homes similar to mine.
In my research today, I found out that the legislative changes that in November 2009 expanded and extended the credit also added documentation requiring that the 2009 tax return must be filed in paper — not electronic — and attach Form 5405, with one of the following:
- For purchasers of conventional homes, a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties' names and signatures, property address, sales price and date of purchase.
- For purchasers of mobile homes who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties' names and signatures, property address, purchase price and date of purchase.
- For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
This being the case, I see I have further research. It seems I can either file a copy of the receipt of my flatbed trailer... which wouldn't include all the other costs of building... or see about obtaining a "certificate of occupancy" ...
More later.
02 December 2009
A Day to Study Taxes
Sorry, but I can't help but post this paragraph:
Puerto Rico has authority over its internal affairs. United States controls: interstate trade, foreign relations and commerce, customs administration, control of air, land and sea, immigration and emigration, nationality and citizenship, currency, maritime laws, military service, military bases, army, navy and air force, declaration of war, constitutionality of laws, jurisdictions and legal procedures, treaties, radio and television--communications, agriculture, mining and minerals, highways, postal system; Social Security, and other areas generally controlled by the federal government in the United States. (http://welcome.topuertorico. |
What a world.
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