First time home buyer credits

[JohnH]

It's a little bit of both.
It's based on the value of the vehicle, but it has a cap.

[Jesse]

Just thinking out loud...........

How in the world will this be tracked by the IRS? If the two people are unrelated, how will the IRS know they bought the house with someone else? There is no reporting from the title companies when someone buys a house. Only on the seller when they sell.

So, each person can go to a preparer and say they bought the house. They can not tell the preparer the truth of buying with a partner. Each person would get 8,000. The IRS has no way to track this do they?

Congress writes these laws so fast and don't stop to think about the fine print and what can and will happen.

Congress don't think (PERIOD)

Request the buyer's closing documents and settlement statement to verify ownership.

Like the EIC will the burden of due diligence shift to us preparers? Even with the address listed on the form do you think there will be efficient computer matching? The buyer's closing statements will not tell you squat about ownership in a home for the previous three years.

Unethical preparers around the world are rejoicing!

[FEDUKE404]

HUT is not a sales tax in NC

It's a tax if it is based on valuation. It's a fee if it is a flat amount. No matter what they call it.

Disagree - The IRS rules say amount of sales tax paid on a motor vehicle can be added to the Sch A, line 5b table amounts.

Per folks in NC, it is NOT a sales tax. From NC DOT website:

Highway Use Tax (HUT)
North Carolina collects a 3% Highway Use Tax on vehicles in lieu of a state sales tax (General Statute 105-187.2). The tax is assessed each time a title is transferred. The maximum tax for commercial vehicles (vehicles with a weight greater than 26,000 pounds) is $1,000.00. All other vehicles are charged 3% with no ceiling.


However, I would love to be proven wrong..........

FE

[JohnH]

I didn't know they had removed the ceiling on non-commercial vehicles.

But then I try to see to it that the last place you'll find me is in a new car dealer's office playing their idiotic games.

[Burke]

It's a little bit of both.
It's based on the value of the vehicle, but it has a cap.

Mmmm, sounds like a tax to me. Interesting post from FEDUKE404 on NCDOT post. What was their reasoning for this method? I think this has gotten a little off-topic from FTHB credit.