Hey, You Gotta Buy The House First
Forbes magazine has reported that some first time home buyers are claiming the $8,000 tax credit BEFORE they buy their house.
Somehow, that doesn't seem quite like it follows the spirit of the law to me. How 'bout you?
The argument for doing this is that some IRS practitioners and real estate professionals have been saying that taxpayers can claim IRS deductions prior to the actual contribution as long as the contribution is made by April 15 of the following year.
The IRS position is that the law requires a purchase to take place BEFORE the credit can be claimed. In addition, IRS Form 5405, used to claim the credit, has a line requiring the taxpayer to state the date of the home purchase. Tax practitioners who assist home buyers in claiming the credit prior to the purchase of a house may be subject to preparer penalties.
Just thought you'd like to know the latest.
For more information on real estate in the Tampa Bay area, please visit my website at www.TheStPeteRealEstateSite.com.
Somehow, that doesn't seem quite like it follows the spirit of the law to me. How 'bout you?
The argument for doing this is that some IRS practitioners and real estate professionals have been saying that taxpayers can claim IRS deductions prior to the actual contribution as long as the contribution is made by April 15 of the following year.
The IRS position is that the law requires a purchase to take place BEFORE the credit can be claimed. In addition, IRS Form 5405, used to claim the credit, has a line requiring the taxpayer to state the date of the home purchase. Tax practitioners who assist home buyers in claiming the credit prior to the purchase of a house may be subject to preparer penalties.
Just thought you'd like to know the latest.
For more information on real estate in the Tampa Bay area, please visit my website at www.TheStPeteRealEstateSite.com.
-30-
posted by Terry Ward at 8:26 AM
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