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first time home buyer


helow

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TP bought a house in 12/1/2008 and received $7500 first time home buyer credit. She heard about the free $8K tax credit and filed 1040x for 2008 and included $8K credit in line 64 of her 2009 tax return. Today she received a letter from IRS with a bill of over $6K, not including interest and penalty. In IRS respond they say that the credit is disallowed because she owned another house. When I asked tp about this she says this is her first home she ever purchased. Could there be mistake here? Maybe the IRS is thinking that TP is claiming the credit again! Has anyone experienced something like this?

Thanks much

Helow

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CORRECTION

TP bought a house in 1/20/2009 and received $7500 first time home buyer credit. She heard about the free $8K tax credit and filed 1040x for 2008 and included $8K credit in line 67 of her 2009 tax return. Today she received a letter from IRS with a bill of over $6K, not including interest and penalty. In IRS respond they say that the credit is disallowed because she owned another house. When I asked tp about this she says this is her first home she ever purchased. Could there be mistake here? Maybe the IRS is thinking that TP is claiming the credit again! Has anyone experienced something like this?

Thanks

Helow

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Another question. TP 2009 shows a refund of 10,000 after including $8000 in line 67 and 2008 she received 7500 refund after she included 7500 credit. The difference between 10,000 and 7500 should be her refund, right? How does it work?

Thanks

Helow

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