February 10, 2010 at
3:27 pm
You’ve made the decision to jump on the homebuyer tax credit bandwagon and purchase a house! Yay you – you are among smartest people alive, by the way.
Assume you’ve budgeted correctly, done your research, worked with a wonderful Realtor® and placed an offer and had it accepted. Now what?
Now you file for the homebuyer tax credit, and get your money! Well, that and actually move in! Semantics, semantics…
How exactly do I go about claiming this? Well, you’re in luck. With the help of the IRS, I’ve laid it out for you in three or four (four for current homebuyers) easy steps:
Step 1: Fill out the Form 5405
Step 2: Along with Form 5405, include 2009 tax returns
Step 3: Include your Form 5405, 2009 tax returns, and one of the following documents:
• A copy of the settlement statement showing all parties’ names and signatures, property address, sales price and date of purchase. Normally, this is the properly executed Form HUD-1 Settlement Statement.
• For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
• For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
Step 4 – This step is only for the current homebuyer’s: You need to prove you lived in your old home for five consecutive years during the eight-year period (ending on the purchase date of the new home). To prove this, include:
• Form 1098 Mortgage Interest Statement or substitute mortgage interest statements; property tax records; or homeowner’s insurance records.
Please note that those claiming the homebuyer credit cannot file it electronically. You must file a paper tax return because of the additional documentation requirements.
I hear the IRS expects to start processing 2009 tax returns claiming the homebuyer credit in mid-February. So have patience!
Happy Homebuying,
Joe
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Categories: $6500, $8000, Claiming tax credit, Expanded homebuyer tax credit, Extended and expanded tax credits, First-time homebuyer, Homebuyers, Starting out, Wisconsin Realtors, Wisconsin current homebuyer, Wisconsin first-time home buyer, Wisconsin homebuyer, Wisconsin real estate, Wisconsin tax credits, current homebuyer
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