AboutCarole Dunton Expertise Preparation of individual income tax returns including social security, pensions, lump sum distributions, sale of personal residence, stock and mutual fund sales, distributions from individual retirement accounts, moving expenses and itemized deductions.
General knowledge of schedule C for small sole proprietorships.
No experience in corporate, estate, partnership or large business returns.
Experience 9 years as tax preparer for major national firm.
Question I am 65 and withdrew a large sum of money to buy a house this year. I wonder if I get any tax break for the amount I used for the downpayment. I am also considered a first time buyer since it has been 7 years since I owned a house.
Thanks,
Sherry
Answer Hi,
The money you withdrew from the IRA is taxable income. Since you are over 59 1/2 you won't have to pay a penalty on the withdrawal.
There is no tax break for the downpayment. By all means take advantage of the first time homebuyers credit.
