For tax credit purposes, does the deed (title transfer) become effective the date it was signed or recorded?

Scott M Florack
Home Buyer
07885

The Federal Housing Tax Credit website states, to be eligible for the $8000 tax credit, "the purchase date is the date when closing occurs and the title to the property transfers to the home owner". We closed and signed the deed on December 30th, but the deed wasn't recorded by the County until January 5th.

If the official "title transfer date" is therefore the 5th, we'd qualify for the $8000 credit. If it's officially December 30th, we'd only get the $7500 loan. (So you can understand why I'm interested in knowing..)

This year we may get an accountant to handle our taxes, but I thought I'd ask some the Trulia Community first for a heads up.

Thanks!

Answers (2)
Gary Torretti
Agent
Livingston, NJ

Scott,

I spoke with a real estate attorney about your question and he said the only one who will be able to give you a difinite answer is your accoutant. It does seems though that it is a 2008 transaction. I would think your accountant will know how to interpert the legal language... I think it's a great question. I would love to hear what your accountant said..

Keep us posted and good luck-
Karen Abramson.

Mon Mar 30 2009, 09:54
Vicky Chrisner
Agent
Leesburg, VA
FIRST ANSWER

I think you fall under last year. It it is a technicality worth talking to a tax accountant on.... but ultimately, this was an 08 purchase, and I suspect any acccountant would agree (but if you find out differently, will you let me know?)

Technically, the sale doesn't even need to be recorded to be legal. (I am not suggesting NOT recording it, there are lots of reasons why it should be recorded, but it doesn't affect the legality of the title transfer).

Find out now... but look at the bright side.... you can claim the interest points, etc. attributable to the purchase in 2008, which theoretically will get you a refund - now, not in a year. Having money today is always better than getting money tomorrow. Really, it's not a bad consulation prize.

Mon Mar 30 2009, 07:51

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