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Answers (10)
- Hamp Yonce, "Zilluminati"
- Contributions:3463
I want you to be qualified.
Here's how they suggest you substantiate 5 out of 8 years, living in the old residence.
Here's how they suggest you substantiate 5 out of 8 years, living in the old residence.
The new legislation extends the credit to long-time residents of the same main home if they purchase a new main home. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. For long-time residents claiming the credit, the IRS recommends attaching, in addition to the documents described above, any of the following documentation of thefive-consecutive-year period:
- Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
- Property tax records or
- Homeowner's insurance records.
- wetdawgs
- Contributions:26833
A friend called about this recently and was told it was 5 years (no rounding) from the date of "taking possession" (i.e. closing plus however many days your state considers that you can take possession - usually the day money changes hands or a day or two later). Of course, this five years must be owned and not leased.
It will be interesting to hear if you get the same answer.
It will be interesting to hear if you get the same answer.
- S81881
- Contributions:8
Hamp,
Please don't misunderstand my current question. I understand that few people on here can actually answer my question, as I can see. I'm just seeking advice from the professional, who may have dealt with a similar issue.
I'd NEVER want to break the law! That's the last thing I want to do! I have 2 children to be concerned about and no amount of money is worth causing us problems with the IRS. Gezz, I'm just seeking some friendly advice, that's all. I could care less about who sees these post, president of the USA to be exact.
I will call the IRS tomorrow and ask when the five year begins. If it is when contract was signed then I should be good to get the credit, if not, oh well, no biggie. I just don't want to miss out if I do qualify. That's all and you can take that to the bank :)
Not trying to come off too defensive, but when your speaking about the IRS and fraud, that scares me and in no way shape or form do I want people to think that I am even considering such an act.
Appreciate your advice though
Please don't misunderstand my current question. I understand that few people on here can actually answer my question, as I can see. I'm just seeking advice from the professional, who may have dealt with a similar issue.
I'd NEVER want to break the law! That's the last thing I want to do! I have 2 children to be concerned about and no amount of money is worth causing us problems with the IRS. Gezz, I'm just seeking some friendly advice, that's all. I could care less about who sees these post, president of the USA to be exact.
I will call the IRS tomorrow and ask when the five year begins. If it is when contract was signed then I should be good to get the credit, if not, oh well, no biggie. I just don't want to miss out if I do qualify. That's all and you can take that to the bank :)
Not trying to come off too defensive, but when your speaking about the IRS and fraud, that scares me and in no way shape or form do I want people to think that I am even considering such an act.
Appreciate your advice though
- Michael Emery, "MikeEmery"
- Contributions:7298
It's five years from when you take possession, not five years from contract.
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Hey, I was simply pointing out that the details about living in a principal residence, for 5 of the last eight years, and how you prove that you did, or didn't, are somewhat vague. And, that few, if any, people here on Zillow, know the answer to your question. You just told us you don't qualify, but seem to want someone here to fix it.
The only possibility that I can think of is, if the five years started when you put the house under contract, and not the day you moved in. This is probably not the case, but it could be. Call the IRS, ask them when the five years starts. When you bought the house, or when you occupied it.
I initially thought, from your first post, that you had moved out of the cohabitation, over three years ago. I thought you qualified for the 8K. I would not encourage you to commit tax fraud. I would encourage you to be as aggressive as you are willing to be, when dealing with the IRS and their massive machine.
The only possibility that I can think of is, if the five years started when you put the house under contract, and not the day you moved in. This is probably not the case, but it could be. Call the IRS, ask them when the five years starts. When you bought the house, or when you occupied it.
I initially thought, from your first post, that you had moved out of the cohabitation, over three years ago. I thought you qualified for the 8K. I would not encourage you to commit tax fraud. I would encourage you to be as aggressive as you are willing to be, when dealing with the IRS and their massive machine.
- S81881
- Contributions:8
Hmmmmm... I'd never try to beat the system, that would hurt me in long run, I'm sure a whole lot more than 6500 bucks. I just would like to see where I stand. Never hurts to seek all possibilities :)
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
I'm with Mike on this one. I don't think being close will count. I would certainly find out what the penalties are for a fraudulent filing. .... Best wishes, Rudi
- Hamp Yonce, "Zilluminati"
- Contributions:3463
Who knows? They would probably take your word for it. I don't know how they could prove when you actually moved. The lease may bite you in back. I wouldn't ever put any of this in writing again if I were you.
The IRS will have thousands of claims for these credits, to decide whether or not to allow, and yours may slide through. It's up to you whether or not you claim to be eligible.
You could claim five years, based on the day the place you purchased, while unmarried, went under contract. That should buy you a month on that calculation. You are squarely in the grey area. You make the call.
The IRS will have thousands of claims for these credits, to decide whether or not to allow, and yours may slide through. It's up to you whether or not you claim to be eligible.
You could claim five years, based on the day the place you purchased, while unmarried, went under contract. That should buy you a month on that calculation. You are squarely in the grey area. You make the call.
- S81881
- Contributions:8
How would they determine if I was there 5 years? I have a lease at current resident, though I was in the process of moving for a bit before this was my primary resident.
- Michael Emery, "MikeEmery"
- Contributions:7298
Call the IRS
1-800-829-1040.
I wouldn't venture to say how lenient the IRS will be in this matter.
1-800-829-1040.
I wouldn't venture to say how lenient the IRS will be in this matter.
Moving up tax credit
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