Last year a client had me Amend their 2008 tax return to claim the $8000 First Time Home Buyer Credit for a qualified home they purchased in 2009.
Now I'm preparing their 2009 tax return. My question is regarding the the OREGON Form 40. Do I reduce the Oregon Federal Tax Liability Subtraction for 2008 or 2009 tax year?
I have read two different yet conflicting instructions concerning this.
Here are the two:
1. "If you elected to amend your your 2008 federal return to receive this credit early......reduce your 2009 federal tax subtraction by the amount you received as a credit(but no below $0").
2. "Refunds from 2009 Homebuyer credit applied for on an amended 2008 return will be taxable in year received up to the amount of federal tax subtraction in 2008. Addition on Oregon return."
SO IS IT 2008 OR 2009 Federal Tax Subtraction? Thank you so much for any help!
Now I'm preparing their 2009 tax return. My question is regarding the the OREGON Form 40. Do I reduce the Oregon Federal Tax Liability Subtraction for 2008 or 2009 tax year?
I have read two different yet conflicting instructions concerning this.
Here are the two:
1. "If you elected to amend your your 2008 federal return to receive this credit early......reduce your 2009 federal tax subtraction by the amount you received as a credit(but no below $0").
2. "Refunds from 2009 Homebuyer credit applied for on an amended 2008 return will be taxable in year received up to the amount of federal tax subtraction in 2008. Addition on Oregon return."
SO IS IT 2008 OR 2009 Federal Tax Subtraction? Thank you so much for any help!