Chief Dick Posted January 30, 2010 Share Posted January 30, 2010 Regarding the tax credit for current homeowners: I know you have to have lived in the house you are vacating for 5 years. The tax credit says you have to have a contract by April 30, and all closings must be complete by June 30. So is the 5 year rule calculated by the April 30 deadline or the June 30 deadline? So if you are in your home 5 years by the time of closing you get the tax credit, or you must be in it 5 years by April 30th. The reason I ask is I bought my home 5 years ago as of May 12th. So this will be a minor determining factor whether we buy a house this spring or wait a year. Quote Link to comment Share on other sites More sharing options...
Chief Dick Posted January 31, 2010 Author Share Posted January 31, 2010 WHAT? nobody? Quote Link to comment Share on other sites More sharing options...
bpwallace49 Posted January 31, 2010 Share Posted January 31, 2010 I am not a real estate wonk . . . so I am of no help. Sorry. Quote Link to comment Share on other sites More sharing options...
pig devilz Posted January 31, 2010 Share Posted January 31, 2010 (edited) Found this here About 3/4 of the way down the page. Sounds to me like 5 out of the 8 previous years. Not 5 years exactly. Even if you have a signed contract for a closing before July 1, YOU will still be living in your home come May 12. ------------------ Who is eligible for the non-first-time homebuyer tax credit? To be eligible for the non-first-time homebuyer tax credit, you must meet all of the first-time homebuyer eligibility requirements except for the rules about previous homeownership and purchase dates. In place of those rules, you must: * have owned and lived in your previous home as your principal residence for at least five consecutive years of the eight years before the purchase * buy a single-family principal residence in the U.S. after November 6, 2009, sign a binding sales contract before May 1, 2010, and close before July 1, 2010. Edited January 31, 2010 by pig devilz Quote Link to comment Share on other sites More sharing options...
Chief Dick Posted January 31, 2010 Author Share Posted January 31, 2010 (edited) My question, though, is if the 5 year rule applies at contract date or close date. I guess theoretically the purchase does not happen until the close date. Edited January 31, 2010 by Chief Dick Quote Link to comment Share on other sites More sharing options...
pig devilz Posted January 31, 2010 Share Posted January 31, 2010 I guess theoretically the purchase does not happen until the close date. yeh, thats how I understand it too. but, we are dealing with the guberment, so seek professional advice. ps...you also have to live in the house for 3 years or more after the purchase or the entire credit is REPAYABLE IN FULL. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.