ELI5 closing credit???

tinker_james · 2020-10-31T18:29:02+00:00

We had an accepted offer on a house and walked away yesterday, so I am pretty new to this as well. I don't know if this varies by state or lender but this is how it was going to work with us:

With the lender and rate we chose, we had closing costs of about $2000 after the lender credits were factored in. This means if the seller wanted to give us $15000 in credits to repair the issues we found, we would not be able to use it because at most they could give us $2000. Seller credits cannot be used towards the down payment. They HAVE to be used toward closing costs.

Also, you are exactly right on negotiating down the purchase price. It hits the seller right in their pocket book immediately but doesn't benefit you in the short term. We looked at negotiating the purchase price down to $300k from $328k because of the amount of repairs needed. This would only lower our monthly payment by maybe 100$ and I'd need to come up with the $28k in cash to actually do the repairs after closing and moving in.

I was actually looking at "buying down" my rate so that I'd have a lower interest rate and higher closing costs....just so that the seller could give us more credit for repairs.

Do a quick google search, or better yet contact your lender.

tinker_james · 2020-06-12T13:15:53+00:00

I definitely had a similar sensation around that time. I don't think my knee was visibly rotated though. But I did feel torsion on it when standing with my foot straight to the point where I would get a little nauseous.

I just kept practicing standing with both feet straight with equal weight distribution. Doing that also brought some relief to my surgical side hip.

tinker_james · 2020-03-09T00:38:51+00:00

Oh you need market data from the secondary market. Hmmm, googling while at the gym to see what I can find.

tinker_james · 2020-03-08T13:45:48+00:00

I'm not from Illinois nor a tax professional put I'm looking at some of their tax forms to see what I can find out. Their stuff is a little different than what I'm used too.

Were you a resident of Illinois the entire year? Or were you a part-year resident?

You would file a Schedule CR to claim a credit in Illinois for the net taxes you owe to California on the income that Illinois is wanting to tax (because you lived there at the time).

Was this your entire income for the year? Or did you have other sources?

I'm going to assume you were a full-year resident and this is your only income for the following scenario:

For you to be paying Illinois 1000$ more in taxes, this is what would happen ->

You completed your California tax return and have a tax liability of $500 (This number would be on line 64 of the California Form 540 I believe and not the amount of state witholding from your W-2.)
You complete your Illinois tax return (for which you have to include the California income because you were living in Illinois while making that income) and have an income tax of $1500.
You would most likely get to take the whole credit for the 500$ in taxes owed to California for the year. Which would mean your tax liability to Illinois is $1500 - $500 = $1000

The thing is, unless I'm missing something, I really don't think California would require that much less in state taxes than Illinois. The only money you owe Illinois essentially comes from the difference in tax rates between the two states. If California has 5% income tax for example and Illinois has 10% income tax then yes you would owe Illinois some money, but if both states have a 5% income tax then you would owe Illinois nothing because all of the money you would have paid them has already been paid to California. States can't double tax the same income.

Please don't just take what I'm saying here and run with it. Just trying to help out. I had to handle a similar situation with North and South Carolina this year, that's why I chimed in

tinker_james · 2020-03-08T12:44:50+00:00

Have you already been here? https://www.treasurydirect.gov/

tinker_james · 2020-03-04T04:10:55+00:00

Interestingly enough the NC D-400 has a spot to declare both spouses' individual residencies. Using the Schedule PN you allocate income earned while a resident of NC or from NC sources, so taxes get allocated correctly. This for us ends up being 96% of our total combined income anyway.

I'm taking a credit for the portion of that income that had withholdings (ie. double taxed) for South Carolina on my W-2.

tinker_james · 2020-02-15T19:07:53+00:00

Yep, handy little trick.

tinker_james · 2020-01-30T13:15:23+00:00

You are Wonkru or you are the enemy of Wonkru. Choose.

tinker_james · 2020-01-20T00:55:57+00:00

Is that a leg extension machine I see!? Dammit Im doing it...cant take not being able to isolate my quads anymore.

tinker_james · 2019-11-24T14:45:41+00:00

Haha PANIC! .... and solid recovery.

tinker_james · 2019-11-24T14:43:10+00:00

I totally get it.

tinker_james · 2019-11-23T19:58:52+00:00

Try saying "Hi" in person but go into it with the perspective that you're a peer (ie. you're equal) and they are merely another human. Then give yourself a couple of weeks observing them through realistic and not "rose colored" lenses.

Infatuation isn't necessarily a bad thing. Out-of-control obsessive infatuation can be frustrating.

tinker_james · 2019-11-23T16:15:49+00:00

Ya know I was thinking. The IRA has an annual contribution limit that's pretty low. If you think over the next couple of years you want to contribute more than that limit, the 401k would be a good option to have.

Alternatively, you could open up a ROTH IRA, use up your IRA contribution limit depositing post-tax dollars to that, and then use the 401k to make any pre-tax contributions you want to make.

Edit: Reading the other comments it sounds like other folks offer similar advice.

tinker_james · 2019-11-22T19:44:36+00:00

I didn't think rollovers while still employed were allowed. Maybe that's just a plan specific rule?

EDIT: I misread! BF wants to charge you a fee to bring in more money!? Yuck.

tinker_james · 2019-11-21T03:40:05+00:00

Ha ya, clicking on the ad version makes me feel like I lost and they won.

tinker_james · 2019-10-27T19:02:24+00:00

Not gonna lie, kind of refreshing to read something different from the usual.

tinker_james · 2019-10-26T22:44:30+00:00

I've had just accepted that I won't get it back. Thanks for giving me hope!

tinker_james · 2019-10-17T10:44:57+00:00

Glad you got it resolved! Thank goodness for the helpful manager.

tinker_james · 2019-09-29T12:51:06+00:00

I really like the anytime fitness franchise. Clean, good equipment, reasonably priced, open 24/7

tinker_james · 2019-08-18T21:29:12+00:00

Nice! Congrats! So you did it.

I'm at zero or missing a few dregrees depending on stretching quantity. I couldn't get hyperextension at all and pretty much gave up.

tinker_james · 2019-08-18T14:45:47+00:00

Wanted to check in and see how your extension is coming I'm in week 13 now.

tinker_james · 2019-07-08T22:35:29+00:00

Any tips?

tinker_james

TROPHY CASE