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homebuyer credit question?

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nettie
Valued Member

homebuyer credit question?

I closed on my home loan on June 29, 2010.  I want to make sure that I fill out all the forms correctly before submitted then for the homebuyer tax credit.First of all I were in a lease-purchase home. I was the first one to move in the home.  I signed a contract in Dec. 2007 that I would purchase the home in 2 years which would be by Dec. 2009. The contract also stated ,  that if needed I would be given an additional year to do the lease purchase .  The seller never did a current contract to say that Dec. 2010 would be the new date to purchase by but the words are in the contract that I mentioned earlier that said if needed, another year would be given.  If I attach this contract to the 5405 form,  do you think the IRS would turn me sown and say     that it not binding?   Should I go to the seller and ask for a statement saying that an additional year was given. I have a gut feeling that I maight have some problems with the lease purchase contract.  SOMEONE PLEASE REPLY!!!

Thanks,

Nettie

Message 1 of 6
5 REPLIES 5
ShanetheMortgageMan
Super Contributor

Re: homebuyer credit question?

I'm pretty sure you don't submit a copy of the purchase contract - the only document that is needed should be a copy of the settlement statement (Final HUD-1 is the technical name).  From the sounds of it, it appears the original lease-purchase agreement wouldn't need to be updated since it says if needed you'd have an additional year from 12/09 to purchase the home, which June 29th, 2010 falls within.  You should really consult a tax advisor (such as your own tax preparer) or the IRS regarding this however, as that is the only tax advice I'd ever accept.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 6
nettie
Valued Member

Re: homebuyer credit question?

Thanks Shane,

I did call the IRS and they asked me when did I settle on the house and I told them on June 29, 2010.  He said that the settle date is also the purchase date and that I needed to attach a copy of my contract since I purchase the house after April 30th. 

Nettie

Message 3 of 6
ShanetheMortgageMan
Super Contributor

Re: homebuyer credit question?

Interesting, I guess since it's after the April 30th deadline there is a new documentation requirement - makes sense since anyone closing on April 30th or before obviously went into contract by April 30th.  All of the websites I've read say only need the Final HUD-1 settlement statement, but they probably haven't updated for those who have closed after April 30th.

 

In my opinion as long as your purchase contract is dated before April 30th (which in your case it is), then you should be fine.  Still, I'd suggest you have a tax professional help you with it since you aren't sure.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 4 of 6
nettie
Valued Member

Re: homebuyer credit question?

Thanks Shane,

I will do just that.  I have heard of cases where the IRS are dening the 8,000 tax credit if incorrect is not submitted correctly or incomplete..

Nettie

Message 5 of 6
ShanetheMortgageMan
Super Contributor

Re: homebuyer credit question?

I have heard those stories too, even giving out tax credits to people who didn't qualify for them as well.  Hope you get the tax credit because it sounds like you qualified for it.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 6 of 6
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