I know that the extension to the homebuyer tax credit has not yet passed congress but I am wondering if any knows where to find the exact details of the extension. I will be selling my house on Nov. 30th and am planning to purchase a new house and close either in Dec. or January. I have been in my existing house 6 years so I know I qualify for the $6,500 credit. My question is does anyone know when the credit is supposed to begin, will it be Dec.1st or Jan. 1st? Also, since I technically won't own a home from Nov. 30 until I buy a few weeks later can I still qualify? I am just trying to plan my closing so that I can get the tax credit. I would hate to close on Dec. 4th and then the tax credit for step-up buyers doesn't start until Jan. 1st.
Dear A: Judy is a little behind.
I have read the same info you have and can not answer your question because congress has not acted yet.
My guess is the credit ($6500) for the 5 year people will begin Dec 1. I would delay my closing until I knew for sure. You don't want to miss it by a couple days.
Your best source is the daily news papers or MSNBC or www.irs.gov. I have several friends and clients waiting just like you.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent
Nobody of course knows exactly what an extension would entail if it passes. But how do you figure you'd qualify for any $6500 credit? You aren't a first time homebuyer, you said you've owned your home for 6 years. A couple month break in owning a home doesn't qualify you, under the current credit you can't have owned your home for 3 years. So unless they drastically change the rules, you won't qualify anyway, whenever you close.
You will NOT qualify for the credit because you will have owned a home within three years of your new purchase.