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Tax Credit Deadline to Close Extended

Categories: Uncategorized | Posted: July 13, 2010

Closing Deadline Extended to Sept. 30 for Eligible Homebuyer Tax Credit Purchases

WASHINGTON – Eligible taxpayers who contracted to buy a home, qualifying for the first-time homebuyer credit, before the end of April now have until Sept. 30, 2010 to close the deal, according to the Internal Revenue Service.

The Homebuyer Assistance and Improvement Act of 2010, signed by the President today, extended the closing deadline from June 30 to Sept. 30 for any eligible homebuyer who entered into a binding purchase contract on or before April 30 to close on the purchase of the home on or before June 30, 2010. The new law addresses concerns that many homebuyers might be unable to meet the original June 30 closing deadline.

The IRS reminds taxpayers that special filing and documentation requirements apply to anyone claiming the homebuyer credit. To avoid refund delays, those who entered into a purchase contract on or before April 30, but closed after that date, should attach to their return a copy of the pages from the signed contract showing all parties’ names and signatures if required by local law, the property address, the purchase price, and the date of the contract.

Besides filling out Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, all eligible homebuyers must also include with their return one of the following documents:

  • A copy of the settlement statement showing all parties’ names and signatures if required by local law, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
  • For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
  • For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

Besides providing a tax benefit to first-time homebuyers and purchasers who haven’t owned homes in recent years, the law allows a long-time resident of the same main home to claim the credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. Homebuyers claiming this credit can avoid refund delays by attaching documentation covering the five-consecutive-year period:

  • Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
  • Property tax records or
  • Homeowner’s insurance records.

Sent by our friends at The Cleveland Group.

Is Now The Best Time to Buy?

Categories: Uncategorized | Posted: February 19, 2010

A few things that I wanted to pass along.

1. Wall Street Journal reported an uptick in lumber pricing.  Weyerhauser rep said that with the amount of capacity that got taken out of the market prices are on the rise with the increase in national home starts.

2.  All my mortgage friends are saying rates are about to start their upward march.  The US Government stops their mortgage buying program I believe next month.  This has been keeping rates down.

3.  To qualify for the tax credit the home must be under contract by the end of April and close by the end of June.

4.  We have the capacity for just a few additional presales and still meet the June 30 deadline.

Our spec inventory is low in all neighborhoods.  If you’re in the market for a new home and have the capacity to buy, don’t wait much longer.

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