According to the Obama stimulus plan first time home buyers will get an $8,000 tax credit if you purchase between Jan 1 2009 and Nov 30 2009. Now say I purchase a 3-4 unit apartment building under my companies’ name (and this is my first property I ever purchased) do you think I will qualify for the tax credit?
The only way you would qualilfy for the tax credit is if you lived in one of the units of the building, making it your primary residence, which I’m guessing is not your plan, based on the way you phrased your original question.
yes i plan to live in one of the units
What I really don’t know about is how putting the property in your companies name would affect your eligibility. Obviously the original intent of this tax credit probably wasn’t for investors, but hopefully somebody else on the forum can answer this part for you.
Consult your attorney and see if you can buy it in your name and transfer it into the LLC down the road. But I think that would certainly muck up the waters and make it harder to distinguish yourself from the entity.
Disclaimer- I am not an attorney nor do I play one on TV. I am human, not a reptile. Please consult someone that has actually been to law school for details.
This is some of the language for the 1st time home buyers tax credit.
Those who buy their first home between January 1, 2009 and November 30, 2009 can claim a tax credit of 10% of the purchase price up to $8,000 on their 2008 or 2009 income taxes.
- You have to live in the home as your primary residence for a minimum of three years, or you will have to pay it back.
- There are some annual income requirements. Buyers must make less than $75,000 for singles or $150,000 for a couple. If you make more than that you may qualify for partial credit.
- If you close before April 15, 2009 you may be able to apply the credit to your 2008 taxes. If you are not able to close the loan before the deadline you will have to wait until next year when you file your 2009 taxes.
- If you are already receiving a refund, the $8,000 will be added to your refund. So if you federal tax refund would be $1,000, now it will be $9,000.
- If you owe taxes, the $8,000 credit will be applied to what you owe first. You will receive a refund for the balance.
Was just in a meeting at my JOB. :rolleyes Just thought I mentioned it.