Chris Ruehrwein wrote:
- quote -

(HERA=Housing and Econ Recovery Act)
(ARRA=Amer. Recover and Reinvestment Act)

Different question, but under the same topic: if someone has received
the HERA credit $7,500 loan, as opposed to the ARRA credit $8,000 free
and clear, can they chose to pay it all back before the 15 years are up?

I realize there is no economic reason why one would do this (unless you
expect a lot of deflation over the next 15 years), perhaps it is an
emotional issue for someone. In any case, it makes me wonder how the IRS
is going to track a 15-year annual repayment history (similar to a
previous thread here about getting a statement of estimated payments
from the IRS). I guess there will be a separate line on the back of
Form 1040 for the next 15 years (starting with 2010) showing the "other
tax - homeowner's credit" amount due, then it would be just like
tracking depreciation, loss carryovers, or any other multi-year
tax-related transaction.

-Mark Bole

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<crueh...[at]mathworks.com> wrote:
- quote -

Three-family counts, as long as you are residing in at least one of
the three units and meet the other requirements. You did not ask this
but for the archives: Questions about how to compute the credit for
these multi-family housing purchase situations are coming up more and
more. Perhaps it will save time if the new homeowner completes line 1
of Form 5405. The credit is limited to $8000 (for purchases in 2009;
$7500 blah blah for purchases in 2008) or 10% of the "purchase price
of the home," whichever is smaller. So if one-third the purchase price
of this 3-family residence is at least $80,000, then you have already
maxed out your credit.

The most helpful commentary I have seen so far is at
http://activerain.com/blogs/creditgal. It points out what I wrote
above.

Form 5405: http://www.irs.gov/pub/irs-pdf/f5405.pdf

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"Chris Ruehrwein" <cruehrwe[at]mathworks.com> wrote
- quote -




If you aren't living in any of it as your primary residence, then none of it
counts. If you bought the whole thing and rent out two units and live in
the third, then only 1/3 of the purchase price is used in determining the
credit (assuming the units are of equal size).

You can't use non-residence property purchased toward this credit.






--
Paul Thomas, CPA
Watkinsville, Georgia

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In article <gorjme$r0r$1[at]fred.mathworks.com> ,
Chris Ruehrwein <cruehrwe[at]mathworks.com> wrote:
- quote -


Allocate the portion of this prperty that is your main home for the
credit.
--
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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With Recovery act of 2009 does a 3 family residence count for the credit or
does it have to be a single family residence?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >