Will your 2010 tax return mess up your 2011 Charlotte Home Purchase?

by Tom Tousignant

in Blog, Home Buying, Tax Tips

With the last minute tax legislation that passed in December of 2010, the IRS won’t be ready to accept some tax returns until Mid-February.  For some home buyers in Charlotte, this could mess up their plans to buy a house in the Spring of 2011.

According to a recent article in the Wall Street Journal, taxpayers who itemize their deductions will have to wait until the IRS is ready to accept their tax returns – if not, the IRS will reject the return and you would have to re-file when they are ready for you.

If you are thinking of buying a house in Charlotte in 2011, this could affect you – many lenders will need to see your 2010 tax returns to qualify you for a home loan, and a delay in filing the return could delay your home closing.

With recent Mortgage Guideline changes, not only do you have to file your taxes, but the lender will need to get a copy of your tax return transcripts from the IRS – a process that can take up to 10 weeks after you file your taxes.

If you are looking to buy a house in the first half of 2011, file your taxes as soon as you can – even if you have to pay taxes, so that your home closing doesn’t get delayed.

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