Catherine Posted February 11, 2010 Report Share Posted February 11, 2010 I've been over the form and the instructions, and just want to make sure I have this correctly: Long-time residents sold old home (of many years residence) in July 09 and passed papers on new home October 09. So they are screwed as far as the reduced credit goes? I hate these credits and special treatments that change -within- the year. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 11, 2010 Report Share Posted February 11, 2010 Echoes of my son's situation...closed one week before November 6...We all sighed and kept reminding ourselves that he and his new wife did not have a tax motive for buying another home. Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 11, 2010 Author Report Share Posted February 11, 2010 Echoes of my son's situation...closed one week before November 6...We all sighed and kept reminding ourselves that he and his new wife did not have a tax motive for buying another home. These folks were forced to move the closing up because the condo they were renting was being sold and they had to be OUT. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 11, 2010 Report Share Posted February 11, 2010 So they are not the brightest candle in the bunch, huh? To get a free $6500 they could have rented a motel for a week or two, or even a couple of months in an extended-stay place, with a nice profit left over !!!!!!!!! Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted February 11, 2010 Report Share Posted February 11, 2010 Ahhh, would that my son had that option. He would have jumped at it (or I would have jumped at him!). The seller in his case refused any further delay. Actually, as I recall this credit was still iffy almost until the end. But if these folks could have waited a couple more weeks to see how it would actually play out, they could have really benefited. As Catherine said, all these credits and changes at the last minute are confusing but that's why we get the BIG BUCKS, right? I wish.....it seems I get more complaints than bucks. I even had another church member email me for a "tiny tax question" about IRA's. It was a quick answer but the next time I saw him, he bragged about how Turbo Tax was so great. I asked him why he had to consult me if TT was so great. Well, he wasn't quite confident in the TT answer and wanted to be sure. That's the LAST tiny little answer I give him, I think! Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 11, 2010 Author Report Share Posted February 11, 2010 So they are not the brightest candle in the bunch, huh? To get a free $6500 they could have rented a motel for a week or two, or even a couple of months in an extended-stay place, with a nice profit left over !!!!!!!!! Not that simple, KC. My folks consist of an out-of-work spouse going stir crazy without enough to do, and a working spouse who had just started a high-profile, much-awaited job and was going nuts over multiple moves and stressing over the closing. Frankly for them the money would be nice but I'm not sure they wouldn't have had a major meltdown in the extra month. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 11, 2010 Report Share Posted February 11, 2010 I apologize for a too-fast answer, that sounds, on second reading, a bit smart-aleck and unfair. While my answer is true of some, there are lots of good reasons besides taxes for most decisions we make. The smartest 'tax' answer may be the worst choice, in some situations. My bad. Quote Link to comment Share on other sites More sharing options...
Cathy Posted February 11, 2010 Report Share Posted February 11, 2010 Just be glad that you didn't miss the "free" money by one day.....closed on 12-31-08 means loan.....closed on 1-1-09 means free! Cathy Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 12, 2010 Author Report Share Posted February 12, 2010 I apologize for a too-fast answer, that sounds, on second reading, a bit smart-aleck and unfair. While my answer is true of some, there are lots of good reasons besides taxes for most decisions we make. The smartest 'tax' answer may be the worst choice, in some situations. My bad. @KC -- No problem. These folks were so stressed out about the house purchase it would not have been smart for them to delay. It was a short sale and the bank had dragged the process out for so long it was obscene -- and that was just the surface problem. I'm just really sorry that in addition to everything else they missed the cutoff. If they'd been in that house when they -should- have been (August!) without all the daily (hourly) "are we going to lose this house" crap, no one would care about the credit; it would be down in the noise. @Cathy -- Yes, that would be royally annoying. Yet another problem with constantly changing laws where no one can plan anything without looking back and thinking "Argh!!" Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 12, 2010 Report Share Posted February 12, 2010 Does anyone know why folks spend bucks for Turbo Tax and brag about it when they could use Free File on the IRS website.? I know that we have been around the FTHB block a time or two on this board. It is frustrating, it is difficult to explain these mid-year changes to clients and that is the end of my "vent" for now. How about the "new" rebates or whatever they are for energy-efficient appliances that they announced this morning? They flatly stated that if you bought it last week, you are out of luck. Like we need more confusion. Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 12, 2010 Report Share Posted February 12, 2010 They are state rebates and the time periods vary depending on the state: http://www.energystar.gov/index.cfm?fuseaction=rebate.appliance_rebate taxbilly Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 12, 2010 Report Share Posted February 12, 2010 They are state rebates and the time periods vary depending on the state: http://www.energystar.gov/index.cfm?fuseaction=rebate.appliance_rebate taxbilly Thanks.......I added the WI site to my Favorites as there are bound to be a gazillion questions about this one. Quote Link to comment Share on other sites More sharing options...
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