Jan 20, 2010

Tip 43-2009: First TIme Buyer's Deadline

The “closing” must occur prior to Dec 1, 2009, in order for the First Time Buyer to receive the $8,000 tax credit. With Thanksgiving the week before (the courthouses, lenders and attorneys will be closed Wed [half day], Thur and Fri), the closing must occur either by Tues, Nov 24, or wait until the last possible day Mon, Nov 30. The actual law says the “purchase must occur before Dec 1, 2009”. The term “purchase” according to the Internal Revenue Code means “acquisition”. Several sources note that “acquisition” occurs when escrow closes and title to the property transfers to the Buyer, not when the paperwork is signed. This would mean that the Deed needs to be recorded by Nov 30. What a Confusing Mess!!

Good Strategy: Try to get everything completed prior to Thanksgiving, with anything left over (ex. recording the deed) to be completed on Mon, Nov 30. We all need to work together to try to assist the First Time Buyers with this confusing deadline.

Better Strategy: Write your Congressman for an extension of the First Time Buyer Credit!!

Please contact me if you have any questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

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