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I HAVE A SIGNED CONTRACT TO BUY A HOME. WILL I BE ABLE TO GET THE NEW TAX CREDIT .

IHAVE LIVED IN THE HOME FOR 5 YEARS +  I AM SET TO CLOSE BY THANKSGIVING.
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November 05 2009 - Toms River
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The IRS has stated in previous opinions that the day you CLOSE on the property is the day you take ownership of the property - as opposed to the day you signed the contract to purchase.

My guess (and it's only a guess because the IRS makes the rules) is assuming you would qualify for the credit, you would be eligible for for the credit because you would be closing after the law is enacted. While it has not become law (as of Thursday), once signed by the President the law becomes effective immediately.

My advice would be to call the IRS after the bill becomes law to see how they will interpret this portion of the bill. The IRS has the final say in how the law is interpreted for tax purposes.

Good luck.
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November 05 2009
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I am buying a land, and hiring a developer to build a house. It is my primary resident which cost is less than 800K. is it qualified for $6500 tax credit?
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November 11 2009
To clarify my previous statement. According to industry sources the day you close is the day you are eligible for the credit. So as long as you close after the signing of the bill you are ok. The IRS (in the past) disregards the date of acceptance of the purchase agreement. Instead they use the day that you close as the date you took possession of the home.
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November 06 2009
UPDATE:  President Obama approved the Extension of the Tax Credit and it goes into effect immediately; which means as long as you have lived in your home for at least 5 consecutive years and meet the income requirements, YOU QUALIFY now!
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November 06 2009
WFamilyMan,

Attached is a link to a table from NAR showing the differences between the original Tax Creditand the Extension (which still needs to be authorized by the President):

As I read it, you would NOT be eligible for the "credit" if you close before December 1, 2009!  You may want to consult your attorney?
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November 06 2009
 
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