Posted on: 30th Jul, 2010 02:24 pm
I owned a townhome since 1995, and bought a house on 12/1/2009. Everyone said I was so lucky I can get the Federal 2nd time home buyer tax credit. But, IRS kept asking me to attach the final settlement statement. I did twice and finally was told that I used my trust as a buyer. It is not a indivudule buyer. That is the reason IRS denial. I was shocked. I didn't know that using my trust name give me this trouble.
The fact is that I signed most documents with my own name before the final settlement statement. At last moment, I thought I use trust can avoid future probate. Also my previous home's title changed to my trust when I made my trust in 2003. To use my trust will match the title of my previous home. So, I asked the title company to use my trust name as the buyer at almost last minute for the closing.
All the money I paid was from my personal bank accout. I signed as my own name for all documents except the last settlement statement. I have all the emails showing the change I asked escrow company. I felt so bad I ruined what I should get by my own mistake.
Is there anyone know whether I still have a chance to get it? What I should do? It is $6500. I appreciate if some one help me.
The fact is that I signed most documents with my own name before the final settlement statement. At last moment, I thought I use trust can avoid future probate. Also my previous home's title changed to my trust when I made my trust in 2003. To use my trust will match the title of my previous home. So, I asked the title company to use my trust name as the buyer at almost last minute for the closing.
All the money I paid was from my personal bank accout. I signed as my own name for all documents except the last settlement statement. I have all the emails showing the change I asked escrow company. I felt so bad I ruined what I should get by my own mistake.
Is there anyone know whether I still have a chance to get it? What I should do? It is $6500. I appreciate if some one help me.
Welcome rkuang,
As the final settlement statement is in the name of the trust, you may not be able to qualify for the tax credit of $6500. I don't think you can do anything in this regard as the IRS has denied you the tax credit.
As the final settlement statement is in the name of the trust, you may not be able to qualify for the tax credit of $6500. I don't think you can do anything in this regard as the IRS has denied you the tax credit.
So, nothing I can do about it.
That is a terrible mistake I have made in my life!
Hope no one else like me!
That is a terrible mistake I have made in my life!
Hope no one else like me!
Replacement housing must be your principal residence. It is not necessary in the law that you sell your current home. You can rent it, make a second home or list it for sale later in 2010, where prices may be higher. If you intend to keep it, but be sure to move into the new house the day you close, so there is no doubt that was your principal residence at the time.