Repeat Home Buyer Tax Credit Question

[Questionguy101]

Interesting scenario.

Taxpayer signed the papers on 4/30/2010. She said her real estate agent brought the papers to her home to sign. So all the papers were dated 4/30/2010.

But the closing date on the closing statement is 5/5/2010.

The rule says "The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010)."

My question is how to determine when the "binding sales contract" was signed? Which paper shall we look for in order to make the determination?

[taxmom34]

same scenario

was posted last week on turbo tax community live. seems to me these real estate agents should have been aware of the dates to qualify

[S T]

Deal Not Done

Until Escrow closes, would be my guess, doesn't matter when papers are signed. If IRS can give clearer clarification, then we would know.
I would use the actual escrow/attorney close/funding date, not the date the Real Estate is using on a contract.

Sandy

[Burke]

A binding sales contract is just that. If all parties signed the contract on or before 4/30/10, it is good, as long as it closes before the deadline of June 30. I would, however, attach a copy of that contract along with the HUD-1 to document the eligibility for the credit. The caveat here is that ALL parties must have signed the contract for it to be valid. Otherwise, it is just an offer. Closings can be delayed for any number of reasons, usually administrative.