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More of a how can I qualify not do I qualify question:
Shame on me for trusting the seller's attorney - I closed on a new construction house on Nov. 4th. I didn't know it would pass the senate the same day and be signed 2 days later or I would have waited. The attorney said that the new law was going to be retroactive for all purchases in 2009, but that is obviously not true. So it looks like I missed it by 2 or 3 days. Now I am kind of freaking out because I was counting on this credit when I set my down payment amount.
Anyone have any ideas of how I could possibly qualify? I thought of 3 options but Im not sure if any will work:
1. I live in NC but I was told that in some states there is a 3 day recision period after closing and I thought that maybe that could be construed as the actual purchase date, but there doesn't appear to be a recision period in NC.
2. There was an error on the survey and the attorney said that would be re-done. Can I have the settlement date changed to reflect when the correct survey is added?
3. Its new construction (bought from a developer) and the instructions for the purchase date on the old form state "Enter the date you acquired the home. This is the date you purchased it (or the date you first occupied it if you constructed your main home)." Technically it was constructed and as it happens, we didn't actually move-in/occupy it until the 7th because it wasn't quite done on time. If the new form keeps this definition, it seems reasonable to me that I could accurately write in the 7th as the purchase date, but I would have to turn in a settlement statement stating the 4th and I don't want to go to jail if the IRS doesnt buy this argument!
Thanks for any ideas!
I think 1 and 2 would be considered forms of fraud, as they are attempting to mislead the IRS to your benefit, and for #3, that doesn't apply to you. The occupancy clause is for people who are building their own homes on lots that they own, NOT for people who bought a new construction house from a 3rd party.
Do you otherwise qualify? Did you own and occupy one property for 5 of the last 8 years and are you under the income limits. If so, I would say you should talk to either an accountant, an attorney, or both to see if there is a LEGAL way you can qualify.
The truth is, though, that the information was available that it was not going to be retroactive for quite some time before the bill was signed. I knew that for several weeks ahead of time, so you could have found that out on your own if it were that important to you, with a little research. If the attorney told you that it would be, in writing, you might have a case against them. If they just told you, not in writing, you probably don't.
My wife and I are in the process of selling our home and we plan to start building some time in December/January.
I bought my home that I am selling now myself in 2003, my wife and I married in May of 2005 so she has lived there for a little over 4 years.
Would we qualify for this? Since she has lived there for only 4 years and never owned a home, it has always been in just my name. Or could I perhaps try and get the mortgage for the new house we build w/o her on the mortgage?
My wife and I are in the process of selling our home and we plan to start building some time in December/January.
I bought my home that I am selling now myself in 2003, my wife and I married in May of 2005 so she has lived there for a little over 4 years.
Would we qualify for this? Since she has lived there for only 4 years and never owned a home, it has always been in just my name. Or could I perhaps try and get the mortgage for the new house we build w/o her on the mortgage?
Not sure how this would work...
Thanks
This is a little trickier one. Here's my take, with the caveat, as always, that you should discuss this with your accountant or attorney.
You wouldn't qualify either way for the $8000 first time homebuyer's credit, even if she bought the new house herself, because it counts houses that spouses owned, even if the couple is separated, or before marriage.
For the $6500 credit though, it shouldn't matter that she only lived in the house for 4 years, I don't think. If you lived in the house since 2003, you should qualify whether her name is on the new mortgage or not.
This is a little trickier one. Here's my take, with the caveat, as always, that you should discuss this with your accountant or attorney.
You wouldn't qualify either way for the $8000 first time homebuyer's credit, even if she bought the new house herself, because it counts houses that spouses owned, even if the couple is separated, or before marriage.
For the $6500 credit though, it shouldn't matter that she only lived in the house for 4 years, I don't think. If you lived in the house since 2003, you should qualify whether her name is on the new mortgage or not.
Agree, this is trickier, and should consult with a tax professional, or call the IRS.
However, from the language of the credit act, "In the case of an individual (and, if married, such individual’s spouse)...", it appears to require both spouses to have lived in the the home for 5 years, not one or the other.
From the dates, it appears that the wife will qualify if they purchase a new home after May 2010. However, they must have a contract on a new home by the end of April 2010 and close by July 1st.
Agree, this is trickier, and should consult with a tax professional, or call the IRS.
However, from the language of the credit act, "In the case of an individual (and, if married, such individual’s spouse)...", it appears to require both spouses to have lived in the the home for 5 years, not one or the other.
From the dates, it appears that the wife will qualify if they purchase a new home after May 2010. However, they must have a contract on a new home by the end of April 2010 and close by July 1st.
Ooh, it does say that, doesn't it? I can't imagine that the intention was to punish those who have gotten married in the last 5 years, but technically, that is what it says. I think the intention was to include a spouse, such that they couldn't both claim the exemption on the new house, or they may have just included it because it was included on the original wording, because the spouse couldn't have owned a home in the last 3 years either to qualify for the 1st time homebuyer's credit. I really don't think that the intention was to exclude someone in JK's situation, but that might be one to call the IRS on.
If it really is strictly as worded, then the wife wouldn't qualify in May either, since she was never an owner on the property. Unless you are in a community property state, then maybe. That really is a complicated one. Definitely consult at least an accountant.
Ok, I suggested calling the IRS, but I've found today that there don't seem to be any numbers you can call listed on the IRS website that let you talk to a person. Has anyone been able to find a number where you can ask a live person a question about this? Even the number for our local office just gives a recording that says to call the main number. All the recordings at the main number are totally out of date and have no useful information.
The reason I'm now looking also is that my boss is actually trying to contact the IRS today on behalf of a really complicated one for a client.
Buyer X is currently married, but about to get divorced, and buying a new house as sole and separate. X owned and occupied a house for over 5 years out of the last 8 years. X originally owned the house with spouse A, got divorced, got remarried after moving from that house and is now divorcing spouse B. Spouse A only lived in the house for about a year. Spouse B never lived in that house.
So neither spouse A nor spouse B qualify, but Buyer X is buying sole and separate, and would qualify if X had never been married. Does X qualify? If so, do they qualify for the entire $6500 or just the $3250 for the "married filing separately"?
Definitely need to talk to the IRS on this one, but there seem to be no living people there, confirming my long time theory that the IRS is made up of a bunch of automatons.
...Buyer X is currently married, but about to get divorced, and buying a new house as sole and separate. X owned and occupied a house for over 5 years out of the last 8 years. X originally owned the house with spouse A, got divorced, got remarried after moving from that house and is now divorcing spouse B. Spouse A only lived in the house for about a year. Spouse B never lived in that house.
So neither spouse A nor spouse B qualify, but Buyer X is buying sole and separate, and would qualify if X had never been married. Does X qualify? If so, do they qualify for the entire $6500 or just the $3250 for the "married filing separately"?
Definitely need to talk to the IRS on this one, but there seem to be no living people there, confirming my long time theory that the IRS is made up of a bunch of automatons.
LOL - the secret's out!
Not sure about this scenario. When did Buyer X sell the home? If more than 3 years ago, may qualify for $8K credit.
I thought the form used to file for the credit may have some answers, but it won't be revised for the extension changes until December. Probably would be difficult to find an IRS person that can answer the questions until they finalize the new form.
I had a lender earlier this week who was absolutely positive, to the point of getting almost hostile about it, that a person who owned for years 1-5 of the last eight, sold it and then bought a house and lived in it for the last 3 years would NOT qualify. According to her, if they had sold their house after at least 5 years and then RENTED, they would qualify, but because they bought a house since then, THAT is the house that they have to qualify with.
I'm 99.99% sure she is incorrect, but it just serves to show how much incorrect information is currently out there. We even went in to the local IRS office, and they told us that they haven't even received any guidelines yet, so they couldn't answer any complicated "Do I Qualify" questions yet.
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