As you can tell, that November deadline is just around the corner. In order to qualify, your house must close escrow on or before that date. The IRS even states that you may not claim the credit in anticipation of a purchase that has yet to happen.
North Highlands, CA (PRWEB) October 29, 2009
Tax attorney Roni Deutch recently published an article on her blog providing last minute tips to utilizing the first time homebuyer credit.
"Early in the year, Congress enacted an $8,000 tax credit for first time homebuyers purchasing a house between January 1st and November 30th of this year," asserted Deutch on her blog. "As you can tell, that November deadline is just around the corner. In order to qualify, your house must close escrow on or before that date. The IRS even states that you may not claim the credit in anticipation of a purchase that has yet to happen."
Below are a handful of the tips Deutch published to her blog explaining how to take advantage of the first-time homebuyers credit. To read the full article, you can check out Roni Deutch: The Tax Lady Blog.
Beating the Deadline
If you plan to take advantage of the credit but have not already begun the process of buying a home, you are probably too late. Even after you have an accepted offer, and received approval on a loan, it can take 30 to 60 days to close escrow. Additionally, title and escrow companies are being swamped with purchases that need to be completed before December 1st, which will likely cause delays if you are trying to close escrow at the last minute.
On the other hand, if you have already begun the process [What process are you talking about?][How does this sentence conform to the second sentence in the paragraph above?], then there are a few things you can do to make sure you beat the deadline. Depending on what stage in the game you are at, you want to make sure that you have all of your ducks in a row. Tell your real estate agent, loan officer, and title company that you are in a hurry and push for as short of a close of escrow as possible.
Qualifying as a "First-Time" Homebuyer
There has been a lot of confusion over the phrase "first-time" homebuyer, as you can actually qualify for the credit if you have bought a home in the past. As long as you have not owned your principal residence within the last three years, then you qualify for the credit. This means, that if you owned rental property and have rented it out for the past three years while residing elsewhere (in property you do not own), you qualify for the credit. So, if you purchased any property this year, then I would highly recommend speaking with a tax professional to find out if you qualify or not. You may be pleasantly surprised.
Non-Houses Qualify Too
As I mentioned before, if you purchased any property in the past year you may qualify for the credit. It actually applies to multiple different types of property including condos, townhouses, motor homes, and even houseboats. As long as the property is your principal place of residence, you can qualify for the credit. Therefore, a summer or vacation home would not qualify.
Millions of people recognize tax attorney Roni Deutch as The Tax Lady®. She has been helping taxpayers nationwide resolve their tax liabilities for over 18 years. As an industry leader, she has saved her clients tens of millions of dollars and has helped thousands of families settle their back taxes. To learn more about The Tax Lady Roni Deutch, you can visit her blog or YouTube profile.
About Roni Deutch, A Professional Tax Corporation
Roni Deutch, A Professional Tax Corporation is a nationally recognized law firm that has been helping clients find solutions to their back tax liabilities for over 18 years. To find out more about the law firm or its IRS tax relief services, visit their website at RoniDeutch.com or call 1-888-TAX-LADY.
The Tax Lady's Guide To Beating The IRS And Saving Big Bucks On Your Taxes
(BenBella Books, February 15, 2009, Paperback Price: $16.95, ISBN 978-1-933771-77-9)
Roni Deutch, A Professional Tax Corporation
877-232-8477 Ext. 2410
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