If purchasing on a land contract is it still possible to receive the first time home buyer tax credit?

Asked by shiningstar1135, 48093 Sun Jun 21, 2009

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Linda Reming…, Agent, Lodi, OH
Mon Jun 22, 2009
With the varying intrepretations, I would defer to a tax professional on this answer.

The IRS literature and documents clearly state if the property has transferred prior to December 1, 2009 you are eligible for the tax credit. You have to read ALL of the literature as there are exclusions clearly spelled out. I don't remember specifically reading what the IRS considers a closing, hence I would seek out specific tax advice from someone who would be prepared to back their interpretation for you if you take the credit.

Anyone can fill out the documents and any claim or filing can be made with the IRS for tax purposes, but their reviews can take up to two years to come back on a determination.....at that point you are dealing with penalties and interest. I don't know that an intrepretation has been made at this point.
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Michael Thom…, Agent, Lambertville, MI
Mon Jun 22, 2009
I rarely out right disagree with an answer....but....if your land contract is recorded (meaning filed with the county/township where you live--as it should be (recording a land contract lets everyone know you have "bought' the property and have rightful claim to it) you will be able to file for the tax credit. I had to clients who got the $7500 this past year doing just that.
Least purchase options don't allow for the same thing,s o be sure it's an actual land contract.
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Linda Reming…, Agent, Lodi, OH
Mon Jun 22, 2009
IF the property transfers into your name you would be eligible for the tax credit. Typically a land contract does not transfer to the buyer of the property until traditional financing can be arranged. A purchase money mortgage is owner financing where the property title does transfer to the buyer with the seller being the first mortgage lien on the property instead of the bank, which in this case the buyer would qualify.
Web Reference:  http://www.lremington.com
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The Hagley G…, Agent, Pleasanton, CA
Sun Jun 21, 2009
the site below will answer all of your questions...I believe you will
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