Saturday, January 23, 2010 11:11 AM
First Time Homebuyer Tax Credit & Other Homebuyer Tax Credit
New requirements for homebuyers and tax credits NO - E Filing! Must send in your Tax Return with the following:
New Form 5405 and Supporting Documents
Eligible first time homebuyers will need to file with their 2009 tax returns. Filers must include 1 of the following documents with a paper return to get credit:
A copy of the settlement statement (HUD - 1) (copy at closing) showing all parties' names and signatures, property address, sales price, and date of purchase.
Mobile home purchasers unable to obtain settlement statement, a copy of the executed retail sales contract showing all parties' names and signatures, property address, purchase price and date of purchase.
Newly constructed home, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
Eligible long time residents who have purchased a NEW principal residence claiming their portion of the tax credit, the IRS now requires you to mail in a paper return to receive credit. To avoid refund delays home buyers are encouraged to attach the following documentation with regards to showing proof of the five-consecutive-year period during the eight-year period ending on the purchase date of the new home.
*Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
*Property tax records or
*Homeowner’s insurance records.
IRS processing of these tax returns will begin in mid-February after system updates. Normally, it takes four to eight weeks to get a refund. These tax refunds will take an additional two to three weeks. IRS estimates that the first refunds on the homebuyer credit will be issued toward the end of March. IRS encourages taxpayers to use direct deposit to speed up refund and send in complete and accurate returns!
Tax filers using IRS Free File to prepare their returns, can print out returns and send to the IRS, along with all required documentation. Where’s My Refund is available on IRS.gov to track status of refunds. Details on claiming the credit are found in the instructions to Form 5405, and on the First-Time Homebuyer Credit page on IRS.gov. Consult your Accountant or Tax Preparer.
Courtesy of Leelanau and Benzie Real Estate.com and Stephan P. DeWitt & Co. P. C. Accountants