Discussion:$6500 homebuyer credit

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Discussion Forum Index --> Basic Tax Questions --> $6500 homebuyer credit
Discussion Forum Index --> Tax Questions --> $6500 homebuyer credit

Txtaxmaster (talk|edits) said:

6 November 2009
Assuming Obama signs it, anybody know what the beginning date for the $6500 non-new homebuyer credit is? Have a client who is supposed to close today.

DaveFogel (talk|edits) said:

6 November 2009
Section 11(j)(1) of the bill provides that the $6,500 credit allowed to long-time residents (IRC ยง36(c)(6)) is for residences purchased after the date of enactment of the Act.

Solomon (talk|edits) said:

6 November 2009
"No credit is allowed unless the taxpayer attaches to the relevant tax return a properly executed copy of the settlement statement used to complete the purchase."

From the JCT.

R2 (talk|edits) said:

6 November 2009
I read that the President signed the bill earlier today.

Waynecpa (talk|edits) said:

9 November 2009
I read the bill language and am wondering if someone is building a new house and otherwise qualifies, would they need to move in after 11/30/09? What type of document would be sent in with the return, the occupancy permit?

Sjrhoffman (talk|edits) said:

9 November 2009
I haven't read the bill. Is there any language requiring an exisiting homeowner to sell their current home in order to qualify for the credit? I would assume not, but am trying to confirm for a client.

TAXBILLY (talk|edits) said:

9 November 2009
http://www.jct.gov/publications.html?func=startdown&id=3621

taxbilly

WIBadgerCPA (talk|edits) said:

9 November 2009
Which congress person needed to change the definition of a first-time home buyer in order to get the credit for themselves? Does this new definition of a first time home buyer work for avoiding penalties on an IRA withdrawal? Gotta love this tax simplification stuff.

DgR (talk|edits) said:

10 November 2009
The Technical Explanation by the Joint Committee on Taxation staff doesn't answer the question of existing homeowners purchasing a susequent principal residence having to sell the existing home. Could it mean they can convert the first home to rental property and still qualify?

LJACPA (talk|edits) said:

10 November 2009
That's what I understand, that you did not have to sell your current home but would have to make the new home your primary residence. This stated that the existing home could become a second or vacation home but I would guess that rental property would work as well. Agree, nothing in the JCT doc.

Sheldon (talk|edits) said:

11 November 2009
Responding to Sjrhoffman and DgR above, I just got TheTaxAuthority update Bulletin from the authors of theTaxBook and the author comments that:

"the law does not say the old home must be sold. It says the old home must be used as a principal residence during the qualifying period, and the new home must be used as a principal residence during the first 3 years after purchase. Thus, a taxpayer could convert the old home into rental or investment property after purchasing the new home and qualify for the credit."

Thus this becomes the real estate and mortgage broker winter relief act! I had heard some mis-information already that you had to move up in price of home, but see that no where. Anyone who has lived in their home for 5 years or more can move down and rent out the former house! Thus a lot of people might consider this option. Please let me know if anyone does not agree.

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