Daycare.com Forum
Daycare and Taxes>Got The Home Tax Credit
Unregistered 08:08 AM 01-18-2011
I received the home tax credit of $8000.00, I thought somewhere I read that I have to solely use my home for the next 3 years a my home. I will be doing childcare this year. Will I have to pay back that money?
AnythingsPossible 07:48 AM 01-19-2011
We bought the home we were renting which I have been running daycare out of 2 years ago. We got the tax credit and it wasn't and issue. I believe the main point is that it has to be your primary residence. You couldn't use it solely for daycare, or move and rent it out or sell it within those 3 years. As long as it is your primary residence, don't think they care what you are doing in it. You just have to reside at that address for 3 years.
If I am wrong, I am so finding a new tax preparer!
If I am wrong, I am so finding a new tax preparer!
TomCopeland 09:19 AM 01-19-2011
Anythingspossible is correct. You won't have to pay back this money if you do child care in your home.
Abigail 10:20 AM 01-19-2011
How do you get a home tax credit? Did you recently purchase it?
Little People 11:09 AM 01-19-2011
Originally Posted by Abigail:
How do you get a home tax credit? Did you recently purchase it?
The home tax credit is over. It was for first time home buyers. It went on for a couple of years. Then you had to send in closing papers with signatures and the IRS sent you a check for $8000.00. There was a little more to it, but this was the basic.How do you get a home tax credit? Did you recently purchase it?
Abigail 11:21 AM 01-19-2011
Thanks for sharing. I remember hearing something about that as our first time home buyer mortgage "teacher" was urging us to buy a house while in this "class" but we said no because we (my husband and I) were only dating at the time. LOL
I was telling my now-husband we were smart even if we planned on getting married (which we did!) because that tax credit was just about the same as closing costs that we may be able to negotiate the selling to help cover and now we're in a better financial situation anyways. Thanks for clarifying for me though.
I was telling my now-husband we were smart even if we planned on getting married (which we did!) because that tax credit was just about the same as closing costs that we may be able to negotiate the selling to help cover and now we're in a better financial situation anyways. Thanks for clarifying for me though.
Little People 11:32 AM 01-19-2011
Originally Posted by Abigail:
Thanks for sharing. I remember hearing something about that as our first time home buyer mortgage "teacher" was urging us to buy a house while in this "class" but we said no because we (my husband and I) were only dating at the time. LOL
I was telling my now-husband we were smart even if we planned on getting married (which we did!) because that tax credit was just about the same as closing costs that we may be able to negotiate the selling to help cover and now we're in a better financial situation anyways. Thanks for clarifying for me though.
Your more than welcome! And Congrts!! During this time with the tax credit, the house market was boomimg!! We bought our new house and the seller paid ALL closing costs. All we paid for was the appraisal and around $500.00 at closing!! We were lucky though! We had 14 houses set up to look at in 2 days. We drove around the area we wanted to move to, and wrote down all the houses we liked that were for sale and then "let the hunt begin" lol. The first house we went into (the sellers were just leaving) we fell in love with!! We spent 2 hours checking everything out. The sellers returned and they were so nice, the house belonged to their Mother who passed away 5 days earlier in the hospital. The house was in excellent condition and was only 12 years old. They lay out was perfect!! We all sat down at the table and my agent wrote the contract and the sellers accepted it on the spot!! We were in the house in 3 weeks!!Thanks for sharing. I remember hearing something about that as our first time home buyer mortgage "teacher" was urging us to buy a house while in this "class" but we said no because we (my husband and I) were only dating at the time. LOL
I was telling my now-husband we were smart even if we planned on getting married (which we did!) because that tax credit was just about the same as closing costs that we may be able to negotiate the selling to help cover and now we're in a better financial situation anyways. Thanks for clarifying for me though.
You and your hubby will find your dream house soon!! Good luck!!