extended home buyer tax credit

[Ed]

I have a question about claiming the extended home buyer tax credit.
The IRS says that if the qualified home buyer has a binding written
contract by April 30, 2010 and closes on the house by July 1, 2010,
they can amend their 2009 return and apply the credit, or they can
wait and take the credit on their 2010 return filed by April 15, 2011.

My question is if they haven�t closed on a house by April 15, 2010
wouldn�t they be better off just getting an extension? Assuming they
meet the April 30 contract deadline and the July 1 closing deadline,
their return could be filed electronically any time up to October 15
and they could get their money in a couple of weeks. Wouldn�t that be
better than going through the lengthy amendment process? And if the
deal falls through or they otherwise don�t qualify for the credit,
they still have till October 15 to file.

Ed

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

[removep...@yahoo.com]

On Nov 10, 6:26�pm, Ed <edur...@aol.com> wrote:

> I have a question about claiming the extended home buyer tax credit.
> The IRS says that if the qualified home buyer has a binding written
> contract by April 30, 2010 and closes on the house by July 1, 2010,
> they can amend their 2009 return and apply the credit, or they can
> wait and take the credit on their 2010 return filed by April 15, 2011.
>
> My question is if they haven�t closed on a house by April 15, 2010

> wouldn�t they be better off just getting an extension? �Assuming they

> meet the April 30 contract deadline and the July 1 closing deadline,
> their return could be filed electronically any time up to October 15

> and they could get their money in a couple of weeks. �Wouldn�t that be
> better than going through the lengthy amendment process? �And if the

> deal falls through or they otherwise don�t qualify for the credit,
> they still have till October 15 to file.

The amended return process is not that lengthy. Normally it's about
one month, but it could be more around April 15. In addition, you
will be paid interest when you do an amended return.

If you want to be really fast, reduce your withholding at work (i.e.
increase your number of exemptions), then you'll see more money in
your next paycheck.

[HLunsford]

removep...@yahoo.com wrote:
> will be paid interest when you do an amended return.
>
> If you want to be really fast, reduce your withholding at work (i.e.
> increase your number of exemptions), then you'll see more money in
> your next paycheck.
>

Sure, even if you DO have to lie and say you have 22 allowances!

ChEAr$,
Harlan Lunsford, EA n LA