The tax law isn’t always crystal clear, and when it comes to a question of interpretation, the IRS doesn’t always agree with the Tax Court. The tax agency may appeal a ruling, or simply announce that it will continue to take a contrary position. Normally this happens when the IRS believes the Tax Court has been too generous. In a man-bites-dog story, the IRS recently announced it won’t follow a Tax Court interpretation relating to the mortgage interest deduction because it was too strict. (more…)
Archive for the ‘Home Ownership’ Category
Boost in Deduction for Large Mortgages
Saturday, October 23rd, 2010Deadline Looms for Homebuyer Credit
Saturday, September 11th, 2010If you entered into a contract to buy a home by the end of April, you have until the end of September to close on the purchase if you want to claim the homebuyer credit. For details see the IRS guidance here.
Friday Wrapup
Friday, July 2nd, 2010A rare break in congressional gridlock produced some actual tax legislation this week, albeit of limited scope. In addition, it appears we may be heading toward an expansion in the use of Roth retirement accounts. (more…)
Homebuyers May Get Reprieve
Wednesday, June 30th, 2010Update: this legislation has been passed by the Senate as well as the House, and becomes law upon being signed by President Obama.
Under current law, the homebuyer tax credit is available only if you had a binding contract by April 30 and close on your transaction by June 30. The June 30 closing deadline has posed problems for some purchasers, and on June 29 the House of Representatives passed a law that would extend the closing deadline to September 30. The Senate must act before this bill can become law.
This bill would extend the closing deadline but does not make the credit available to people who did not have a binding contract by the April 30 deadline.
