At what point is a short sale considered accepted with regards to the homebuyer tax credit?

1.) Mortgage Banking/Finance – General Finance
QUESTION:
At what point is a short sale considered accepted with regards to the homebuyer tax credit?

ANSWER:
Recent communication from legal counsel from the National Association of REALTORS® states that the NAR tax lobbying staff in Washington, D.C. has confirmed that the IRS has not issued any guidance regarding the question of what constitutes a sufficiently binding contract for purposes of the credit. Although NAR intend to urge the IRS to offer some input of the matter, they do not anticipate that they will do so.
READ MORE ABOUT IT:
More information may be found on the IRS Instructions for Form 5405, @ www.irs.gov/pub/irs-pdf/i5405.pdf: For additional information, see the Wisconsin Homebuyer site @ www.wisconsinhomebuyer.org/, NAR’s The Basics: Extended Home Buyer Tax Credit 2009/2010 @ www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit and the Internal Revenue Service @ www.irs.gov/newsroom/article/0,,id=204671,00.html.

These resources offer examples of fact situations, filing options and other details.

Be sure to talk with your local CPA for any tax advice. If you have a question you can contact my CPA

Patti Maynard and Kelli Belt
Maynard Belt Certified Tax Accountants
CPA/Tax Services
patricia@maynardbelt.com
262-783-0204

Brad Koenig
Your Local Home Team-First Weber
www.YourLocalHomeTeam.com

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Tagged as: Buying a home