Did you know?... Tax Credit nuances

Everywhere you turn, it's first time home buyer tax credit this and tax credit that. So even in my fear of "beating a dead horse" (I don't like that phrase - I'm a fan of horses) overkilling the subject there are some nuances and requirements for first-time home buyers to qualify for the tax credit, such as...

Did you know that you must 'close' on your home no later than December 1, 2009? That means property needs to be transfered into your name by Dec. 1, 2009. And where I practice real estate (Ithaca NY) getting to the closing table takes at least 45-60 days. Just to be even clearer, that's AFTER a purchase offer has been signed and accepted. So please don't wait until October to start looking for a home, you are only hurting yourself!

Did you know that a first-time home buyer is someone who has not owned a home in the past 36 months? (i.e. 3 years) Yes, that's right! If you were a home owner and then sold your home 3 years ago you can still qualify for the credit! DISCLAIMER! according to the IRS they are checking actual closing date to closing date. For example if you closed on your home June 1, 2006 and are scheduled to close on your new home June 2, 2009 you will qualify - congratulations. IF you sold your home July 1, 2006 and are scheduled to close on your new home June 30, 2009 - you do not qualify.

Did you know if you 'bought' your home from a relative that you do NOT qualify for the tax credit? That's right, the IRS deems non-arms length sales (meaning between relatives, not strangers) unqualified for the tax credit.

I suggest consulting with your tax preparer for all the details on the tax credit and for help with buying your first home, I would like to suggest contacting me!

DISCLAIMER: I am a licensed real estate agent, not a tax advisor. Please consult your tax professional if your situation is unique.