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Old 04-03-2010, 12:53 PM
 
6 posts, read 14,372 times
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My escow closed on April 15, but someone is telling me to to tell my realtor to extend my closing date to May 1st so that I will qualify for both Ferderal and State tax incentive. Is this true that I will get total of $18,000 tax credit if I do this? I am a first time home buyer and everything is very new to me.
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Old 04-03-2010, 03:38 PM
 
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i don't think you will be able to get the $18k, it's either the fed. 8k or the state $10k. I believe witht the state credit, your have to be on contract after May 1 and not closed.
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Old 04-03-2010, 03:44 PM
 
Location: Fairfax, Leesburg, Ashburn, Sterling, Reston, Herndon, VA
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you should discuss this with your Realtor. There are specific quals for either program and your Realtor, knowing the details, would be in the best position to determine if you qualify.
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Old 04-03-2010, 10:52 PM
 
Location: Visalia, CA
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For the Federal credit of up to $8,000, if you are a first time home buyer, you must be in contract (if it is a short sale, you must have short sale approval from the lender) by April 30, and close escrow before June 30. For the California state tax credit, you must close escrow on or after May 1, you are eligible for up to 5% of the purchase price or $10,000, whichever is less, until funds run out, and from what I understand, it will still be given out over a three year period. If you have already owned a home, you can still get the state credit for buying a new construction only. However, if you are in escrow on a property that is bank owned, most banks charge $100 or more per DAY that you go past your close date. Make sure your agent gets an extension signed and any per diems waived. Good luck and I hope this helped! Of course, your agent can tell you in detail and it is always good to check with an accountant. Here is the link to the Franchise Tax Board that explains 2010 Tax Credit for New Home / First-Time Buyer
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Old 04-04-2010, 05:02 AM
 
Location: NJ
17,574 posts, read 46,047,306 times
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Quote:
Originally Posted by mb4play View Post
i don't think you will be able to get the $18k, it's either the fed. 8k or the state $10k. I believe witht the state credit, your have to be on contract after May 1 and not closed.
Honestly, it took me less than a minute to google this. You are wrong. In California you can get both credits.
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Old 04-04-2010, 07:44 AM
 
167 posts, read 495,181 times
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Quote:
Originally Posted by ttessmann View Post
For the Federal credit of up to $8,000, if you are a first time home buyer, you must be in contract (if it is a short sale, you must have short sale approval from the lender) by April 30, and close escrow before June 30. For the California state tax credit, you must close escrow on or after May 1, you are eligible for up to 5% of the purchase price or $10,000, whichever is less, until funds run out, and from what I understand, it will still be given out over a three year period. If you have already owned a home, you can still get the state credit for buying a new construction only. However, if you are in escrow on a property that is bank owned, most banks charge $100 or more per DAY that you go past your close date. Make sure your agent gets an extension signed and any per diems waived. Good luck and I hope this helped! Of course, your agent can tell you in detail and it is always good to check with an accountant. Here is the link to the Franchise Tax Board that explains 2010 Tax Credit for New Home / First-Time Buyer
Are you sure that it has to be approved by the "lender" by April 30 in case of a short sale? I have also heard that the contract has to be ratified by the "seller" by April 30. Where did you get your information from?
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Old 04-06-2010, 09:57 AM
 
Location: Placer County, Ca
111 posts, read 462,239 times
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Tino
Are you saying you will be closing on April 15th? not yet closed?
Talk to your agent and lender, depending on the deal it may not be a good idea to delay the closing.
The Ca credit is just that a tax credit spread over 3 years, if you currently don't pay any State taxes it may not be of value to you, talk to your tax advisor.

congratulations on your first home
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Old 04-07-2010, 05:56 AM
 
Location: MID ATLANTIC
8,663 posts, read 22,843,809 times
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Quote:
Originally Posted by need_more_light View Post
Are you sure that it has to be approved by the "lender" by April 30 in case of a short sale? I have also heard that the contract has to be ratified by the "seller" by April 30. Where did you get your information from?

I asked the same question of my accountant. His reply was the contract had to be a legally binding agreement. Real estate attorneys I have talked to, agree. I would think, it would be a legally binding agreement, subject to a contingency, just as "sale and settlement of current home" or "subject to satisfactory termite." And then the question is, how on earth would it be picked up by the IRS that the short sale lender didn't come back with an answer before June 30.

I, too, would really like to see where the interpretation that the short sale lender must be in agreement comes from.

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Old 04-08-2010, 08:02 AM
 
6 posts, read 14,372 times
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Thanks for the in fo guy. After talking to my realtor and mortgage advisor, they say that I would qualify for both but it would cost a little over 3k for extending my escrow. Since all my money is going toward down payment and I'm really ready to move, Ive decided to stick with the original closing date.
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