taxguy057 Posted January 31, 2009 Report Share Posted January 31, 2009 Got a client who bought a home in aug '08 so they qualify for the home credit, but had to put mother on loan who is disabled and client claims her as dependent. Client makes the full mortgage pmt so can she take the full 7500 credit. I know instructions state that you only take half is someone else has interest in the home, but mother doesnt file since totally disabled. Need some feedback on how to file the credit.... Thx! Quote Link to comment Share on other sites More sharing options...
OldJack Posted January 31, 2009 Report Share Posted January 31, 2009 I would think twice about taking the credit as it is nothing more than a loan that has to be paid back each year over 15 years. Quote Link to comment Share on other sites More sharing options...
taxguy057 Posted January 31, 2009 Author Report Share Posted January 31, 2009 I would think twice about taking the credit as it is nothing more than a loan that has to be paid back each year over 15 years. @jack Yeah i knw..explained to them,but they willing to still take it. Guess when they seen how much it jumped their refund up they will worry about paying back later. :dunno: Quote Link to comment Share on other sites More sharing options...
MYDALBASTI Posted January 31, 2009 Report Share Posted January 31, 2009 @jack Yeah i knw..explained to them,but they willing to still take it. Guess when they seen how much it jumped their refund up they will worry about paying back later. I heard that they might make this a true credit and people would not have to pay it back. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted January 31, 2009 Report Share Posted January 31, 2009 Got a client who bought a home in Aug '08 so they qualify for the home credit, but had to put mother on loan who is disabled and client claims her as dependent. Client makes the full mortgage pmt so can she take the full 7500 credit. I know instructions state that you only take half is someone else has interest in the home, but mother doesnt file since totally disabled. Need some feedback on how to file the credit.... Thx! You answered your own question. "instructions state that you only take half if someone else has interest in the home,". Whether the mother has to file is irrelevant. Whether she is disabled is irrelevant. She is on the title, so she has an interest in the home, and so he can only take half the credit. Tell them to be happy that he gets that. Quote Link to comment Share on other sites More sharing options...
joelgilb Posted January 31, 2009 Report Share Posted January 31, 2009 haven't heard anything about converting this to a true credit. KC is right as usual reduce their credit. As a professional you can take aggresive positions with legal support, but you can not help a taxpayer commit what is essentially tax fraud. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 1, 2009 Report Share Posted February 1, 2009 File the mother's tax return for the sole purpose of claiming the other half of the credit. Then file 15 more to make the payments. And if she dies before they are paid off, it is free money. There is nothing wrong with this. And you get some bigger fees and a new client for the next 15 years. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
cathyan Posted February 1, 2009 Report Share Posted February 1, 2009 It's in the stimulus bill that just passed in the House to make it a true credit. Still has to pass the Senate. It may not be such a bad thing for some people. It is interest-free, and some people spend a lot more than $500 on coffee and sodas in a year. If they do have to pay it back, maybe they'll be a bit healthier! Quote Link to comment Share on other sites More sharing options...
taxguy057 Posted February 6, 2009 Author Report Share Posted February 6, 2009 To futher continue this situation I have, the disabled mother who has the other interest in the home that we were seeking the credit for has come to my office to file her return to receive the 1st home buyers credit, but her only income is SSI which she doesnt receieve a 1099SA for, but has brought me a letter from SS Admin office stating the amount she receieves monthly but how do I show on form 1040? I overrode it in line 20a which calculated the credit on form 5405. Would this be the way to go forward with filing the return? Please advise..... Quote Link to comment Share on other sites More sharing options...
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