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Missy Caulk, a top Realtor in Ann Arbor, has heard from the legal adviser to the Michigan Association of Realtors and he seems to think so. This could be a windfall for many who are looking to get the tax credit but are not ready to buy a home yet.
Can buyers in Michigan who buy on a land contract claim the $8000.00 tax credit?
Because the Federal Legislation is silent on the issue, Greg McClelland, our legal council of the Mi Association of Realtors wrote an opinion on it.If you want the entire opinion, leave me a comment here and I will email it to you.
The bottom line is “there is no rational basis for treating land contract purchases differently than mortgagors for the purpose of the credit. via Missy Caulk at Ann Arbor Real Estate Talk.
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72 Comments
I am interested in hearing your entire opinion.
I live in California and am putting together a Land Contract to purchase a condo that I am already renting from my aunt.(Not immediate family member).
I am interested in reading the opinion on the use of the tax credit for land contracts. Thanks for the post.
Personally ready to buy, but our credit rating is not quite good enough now. I would be extremely interested to hear more. If the tax credit could be applied to land contracts that could solve our problem.
please send me info on land contract tax credit
I’m very interested in your opinion, on how the tax credit may apply land contracts. Thanks……
I have helped land contract buyers successfully receive the first-time buyer credit. I would like to see Greg McClelland’s opinion on it.
i would like to know if i quilfy for the 8000.00 for having a land contract for three years. i need to know how to file for it. please respond thank you michele
hi i was wondering if a person who gets rsd “disability” and is getting a land contract signed 7-3-09 would qualify for the tax credit.. as we usually dont file a return cause disability is not required to with his amount annually..
I am Also in Mich. and am having a hard time finding financing. It was suggested to me to try for a land contract, perhaps a one year, until I receive estate money, then I would have enough $ for 20-30% down on a conv. loan. Please send me the info on land contracts.
I am from Michigan and I would like to know more about land contracts and the tax credit.
Interested in hearing you opinion on land contracts and getting the tax credit.
I would apprecaite a copy of the full opinion. Thank you.
Correct – there is no wording in the current tax law affirming or denying the use of a land contract in the purchase of a qualifying principal residence for a qualifying first time home buyer. But the devil is not yet in the details. I believe that the current law supports this assumption, but the IRS, whom I have contacted twice now on the mater, say that a land contract does not work for the credit. Their reasoning is that the title has to transfer from the seller to the buyer. Make no mistake, the IRS will rear its ugly head next year and overturn all credits issued to land contract buyers demanding the credits be repaid. Wow! This could be a huge windfall for the IRS and they can smell blood.
To get around this road block the seller should use a note and a mortgage and transfer the title to the buyer. Nuff said.
Please send me the opinion.
Thank you
PT CPA
From the IRS.gov website:
Q. Can a taxpayer claim the first-time homebuyer credit if the purchase is pursuant to a seller financing arrangement (for example, a contract for deed, installment land sale contract, or long-term land contract), and the seller retains legal title to secure the taxpayer’s payment obligations?
A. If the taxpayer obtains the “benefits and burdens” of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property. (New 7/2/09)
I’d like to see the legal opinion. In the current economic environment their is a huge problem with lenders not closing timely or declining deals based on appraisal issues. Not accepting land contracts, would be a serious limiting factor.
I’m currently looking to buy a home using a land contract in the state of Indiana. I am receiving differing opinions on whether I could receive the credit by using the land contract.
Please email me the info.
Thanks
please email me the full opinion. Thanks.
Please send more information. We are in Indiana trying to buy a home on Land Contract
I would like more information on this as well. Actually, I would just like to know if I buy land (close on it) can I claim that as my primary residence even before I build the house?
The IRS basic information page revised July 02 2009 addresses the land contract issue and states that the “seller can retain legal title” as long as the taxpayer obtains “the benefits and burdens of ownership”. You should advise your readers to visit the IRS site page.
We are getting ready to buy the house we’be been renting for 3 years on land contract. Will you please email me the information?
Thanks,
I am interested in hearing your opinion on the land contracts and whether or not they qualify for a tax credit.
I would like your opinion as well. Thanks
Please send more information.,on land contracts tax credit.
Please send more information on land contract tax credit
Thanks
please send more information on land contract tax credit
I too would like to see the full opinion for teh home credit
Please send me the opinion. We are buying a house on a loand contract in michiga. Thank-you
Here’s our situation. We are about to close on a new house. This is the first house we have owned. We currently live in another house (duplex) we are paying on by Land Contract (The deed and property taxes are not in our name). We were told we would be eligible for the tax credit. However there is an apartment on the side that we have rented out at times. We have claimed that on our income taxes. Will we still be eligible for the tax credit?
If I entered into a land contract for a home in December, 2007, that requires me to obtain a mortgage to pay the land contract in full before receiving the Warranty Deed, can I obtain a mortgage and close the sale before December 1, 2009 and be eligible for the tax credit? Would I be considered a first-time homebuyer since the Deed to the property has not been transferred to me?
I would like a copy of the entire opinion.
I would like to see the entire article on this please.
I would like a copy of the opinion please
Please send me the opinion.
thanks.
I am interested in receiving a copy of your opinion. I am a realtor and am interested in this area of real estate for my clients.
I would like the entire opinion, also does the tax credit apply to commercial building purchases?
Please send me the opinion, as well. Looking into a land contract and would like to be eligible for the tax credit, like everyone else. My realtor’s response was that we wouldn’t qualify with a land contract. We are in IL…does it make a difference? Please advise.
I am interested in receiving your full report and any tips on how to implement the credit with a land contract.
I would like the entire opinion, I am trying to put a Land Contract deal together now. Thanks
I am interested in hearing about the full report you have for the tax credit. I heard about land contracts through my boss and we are renting a house from my father-in-law who is willing to put us in a land contract.
Please send me info asap, I would like to apply for this before the end of the year if possible.
Hey there,
I am from michigan and would love to buy a home however my credit will not allow for a mortgage. I am interested in buying on a land contract. In addition I would like some information on having two land contracts.
I am also interested in finding out about land contract and if the $8K would apply.
Opinion please!
I am signing a LC on monday and would definitely like to hear
your opinion.
Also where do I go for the proper forms filing etc.
Jim George
I would like to know more about it. I need to know how you file for it. Please let me know more.
I would like to read your opinion on the tax credit for land contracts. I would like to know more about the credit, and how one files for it.
Thank you,
Nancy
I’m from Ohio wondering if I submit to a land contract will I be able to get $8000 tax credit?
I would like your opinion please
Todd
I am interested in your opinion. I have people interested in buying my house – rent to own – but maybe land contract would be better so they could get the credit…
Hi,
I would like your full opinion on getting a tax credit for land purchase!
Thanks
Joe
I’m from Indiana wondering if I submit to a land contract will I be able to get $8000 tax credit?
Please forward info on eligibility for first time home buyers credit for homes purchased under land contract.
Thx
would most appreciate any information on this matter
I would like your opinion on the land contract and the $8000.00 tax credit information.
Thank You,
This will solve the questions you have.
I purchased my house in May 2009 on Land Contract. I DID get the $8000 tax credit. I filled out the correct 2 forms and ameded my 2008 taxes to get the money sooner.
Also, you don’t need to pat a CPA a lot to do it. Just fill out the 5405 and 1040X forms. Make sure to call the IRS and know have them walk you through EXACTLY how to fill out the forms croectly or you might screw yourself.
Sorry about all the typos.
I would like your opinion on the current land contract and $8,000 tax credit. Is there anything new from the IRS about how they will treat this matter?
What opinion? It’s free $8000. Read what I posted and it will be a snap.
I am very interested in confirming my understanding that it is possible.
Please send me more information.
My boyfriend and I are currently going to buy a home on a land contract from his father and want to know if we qualify for the new home buyer credit? Please email me details
Oh my god, are you all ignoring what I said? I am confirming it, I am telling you how to do it, and I promise I did it.
I am interested in the full statement, with one question that may not be addressed. How do you file the claim on the federal return when no HUD-1 is generated? I have a land contract and a purchase agreement for an 18-month contract at which time I need to get conventional lending or pay off the balloon.
Regardless of the state, any buyer that has purchased a home via a ‘Deed for Contract’ does indeed qualify. Simply replace the HUD-1 settlement statement with the executed Deed for Contract, and submit the executed contract along with your wage statements, IRS form I5405, and all other applicable tax documents to the IRS. 1040A or 1040EZ cannot be used if you qualify and are claiming the $8,000 tax credit. You must fill out the forms and mail them to your respective IRS office. (For where to mail you return, go to irs.gov/file/content/0..id=105690,00.html)
please send me the entire file on whether land contracts count for the tax credit.
Please send me this info..
Please send this information on weather land contracts qualify for the tax credit.
Thanks
Jim
I am interested in obtaining the legal opinion on the land contracts and whether or not they qualify for a tax credit.
i moved into my home in august 2008 on a land contract, i am closing on my home march 3rd 2010, am i eligible for the tax credit i am interested in your legal opinion.
I would appreciate if you would forward information on whether land contracts qualify for the tax credit.
Thanks,