The Federal Tax Credits Blog

Archive for May, 2008

Regardless if you already own a home or are looking to make a purchase, the timing of your VA loan is critical. Let’s examine WHEN you need to go to your local bank and apply for financing.

60 days is a good rule of thumb.

In today’s market, closing on a VA mortgage will take somewhere in the neighborhood of 45 to 60 days. While it IS possible to make a closing in 45 days or less, I always suggest to err on the side of caution. Appraisal issues, termites, and slow insurance companies can add to your delay. By staying a step ahead and planning for the worst, you’ll be stress free and sleep soundly.

If you are selling your home AND buying another home

I suggest applying for financing when YOUR home goes under contract. This means you have a rock solid buyer and have collected a cash deposit. With your property under contract and knowledge that your financing will take 60 days, this is now the perfect time to start shopping for your next home. In today’s target rich environment (and by that I mean the market is flooded with homes for sale) you should have no problem finding your next home.

Nobody wants to move twice

When you put your home up for sale, you may find a buyer that wants to close quickly. This could be a problem if you still have not found your NEXT home or the buyer wants to close in less than 60 days. (Remember you need 60 days for YOUR financing.) If this is the case, I suggest you put into your sales contract the right to lease back your home AFTER it sells. This allows you to finalize the transaction but still remain in the home.

Putting your next home under contract

After you locate your new home, try to negotiate for the longest possible close date. This is a DELICATE process of give and take. Make sure you don’t give the seller the impression that you can’t close or that you aren’t serious. Show the seller your VA Loan pre-approval to inspire confidence. After you have the set closing date, say it’s April 1st, 2009, make your contract read, “closing to commence on or before April 1st, 2009.” That way you have the OPTION to close any time up until the final day of April 1st, 2009. I would also suggest putting into the contract the right to extend the contract should you need more time. You may need to offer the seller some cash for the extension rights, but it’s definitely worth having.

In a nutshell- get your VA loan financing started and plan on closing in 60 days. Make all your other arrangements around this time frame and you’ll enjoy a seamless hassle-free closing.

Waterloo Region Event Calendar

Here is a list of things to see and do in the region.

Question: Can I still amend my 2008 tax return to get the new home buyer’s credit?

I recently purchased a house this year and also got married. I don’t want to file my 2009 taxes jointly in order to get the entire home buyer’s credit. Am I too late to file an amendment for my 2008 taxes (where i filed single) and get the full credit? I am in the military and stationed overseas, and at the moment also currently deployed, if that offers any other kind of extensions)

Answer: yes, you can claim home buyer’s credit on 2008 amended tax return. you can still file it.

On the amended tax return Form 1040X, enter the credit on line 15 of Form 1040-X and enter “Form 5405″ in the white space at the end of line 15, and attach the Form 5405. Attach a copy of the HUD-1 or RESPA settlement sheet as proof.

TAKE 5

Companies wont be sending out the W2 forms needed to complete income tax returns until next month, but the time to start preparing for tax season is now. With only a few days left before the clock runs out on 2009, there still may time to take action to reduce tax liability, said certified public accountant Bob Miller, a director of the Maner Costerisan accounting firm in Lansing. Its time to …

HomeBuyer Tax Credit Explanation Nov. 6, 2009

Question: Does a new roof qualify for the Residential Energy Improvements credit?

We had a new roof put on in 2006 – 40 year Owens Corning shingles. I see that metal roofs qualify, but wasn’t sure if a regular roof would qualify as being an improvement to insulation.

Answer: It should, check with your local authorities.

All the best!/

Buying a home or making green home improvements? Don’t miss out on these tax credits

(ARA) – A wide range of tax law changes over the last year will result in considerable savings for millions of Americans on their 2009 federal tax returns.

ACT ON CO2: William Bickers-Jones installs his loft insulation