Ask Experts Questions for FREE Help !
Ask
    lost??'s Avatar
    lost?? Posts: 234, Reputation: 7
    Full Member
    		  
    #1

    Jun 2, 2009, 06:48 PM
    How to use first time home buyer tax credit
    Hello. I just purchased my first home and am getting the $8K tax credit. I know many people are saying to use the majority of the credit to pay down the principal and get interest savings. However, I plan to sell in 5 or 6 years, so if I do not stay until the mortgage is paid off, I will not see an interest savings. However, the house does need repairs (pretty much a whole new kitchen, among other things). Would it be a good idea to invest the whole $8K in renovations in order to get a better selling price down the road, or should I hold on to some of it and save/invest it? Thanks.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Jun 2, 2009, 11:30 PM

    This is your personal decision. Do what ever is best for you.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jun 3, 2009, 08:22 AM
    Upgrading the kitchen will maintain (but NOT increase) the home's value, so that is one way to use the money.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

2009 First Time Home Buyer Tax Credit [ 2 Answers ]

I recently purchased a foreclosure in FL and wanted to take advantage of the full firt time home buyer tax credit of 8k. However the property only cost me 27k as the purchase price. Since I put over 55k of work into the place (total cost of 82k), will I be able to add these two amount together to...

First Time Home Buyer $8,000 Tax Credit for Non Resident Aliens [ 6 Answers ]

Hi, Hope everyone is doing great. I am currently on H1B Visa which makes me an NRA (Non-Resident Alien). We are planning to buy a house and our realtor told us that as NRA we are eligible to get the First Time Home Buyer $8,000 Tax Credit. I tried to find something about NRA's in .gov Web...

Tax credit for 1st time home buyer [ 1 Answers ]

My fiancé has never purchased a house so we would like to take advantage of the $8000 1st time homebuyer tax credit. I however own a home. Does he need to buy our next home without me on the title? Can I be a co-signer for the loan even if I am not put on the title? Can we be married? (Our...

First-Time Home Buyer Tax Credit [ 5 Answers ]

I was wanting to get opinions on the First-Time Home Buyer Tax Credit. I've looked over the website and it looks to be just a loan from the government. I was wondering if any one has heard more about this. Like, do you think there would be long term problems from taking this or is it a good...

First time home buyer tax credit eligibility [ 2 Answers ]

Hi, I am not H1B visa and my wife is on H4 visa. I have SSN and my wife has ITIN. We are planning to buy a house and I want to know if we are eligible to receive $7500 tax credit when I file the tax return for 2008. Thank you

View more questions Search