Should I close on my house (buyer) in 2011 or 2012?
December 20, 2011 8:32 AM Subscribe
If I have the option, is it more advantageous for me to close on a house (tax wise) in 2011 or 2012?
posted by batcrazy to Home & Garden (11 answers total)
I am a first time home buyer. I am buying a single family home using a 203(k) loan and am getting ready to close. My closing is set for next Wednesday (12/28).
I am wondering if there are any tax implications I should consider that make it more advantageous to close in 2011 vs. 2012.
Things to consider:
* I've earned $30,000 in 1099 (consulting income) this year that I need to pay taxes on in January.
* I'm tearing the existing house down and rebuilding a 3-unit apartment building in its place -- I'll live in one and rent the other two out. Right now, the plan is that the project is move-in ready by July 2012. I anticipate actually moving in August or September 2012.
*I will need the rental income to make the mortgage payments after a few months.
There is no longer a first time home buyer credit, but since I'll be renovating, I'm expecting to take advantage of other credits for energy efficiency etc.
If you need more information to help pro/con this, please let me know.
I know you are not an accountant, but I'd like to crowd source this to have a little more to noodle on and research before calling my accountant later on today.
Thanks in advance!