Ready to claim your First Time Home Buyer Tax Credit?
Here's what you'll need to have ready to send in with your tax return:
- A copy of your HUD-1 settlement statement with all parties signatures, the property address, the seller(s) and buyer(s) names and the purchase price. (You should have left closing with the HUD-1).
The IRS may come back and ask for the additional documentation below:
- A copy of your most recent monthly mortgage statement, and
- A copy of the occupancy permit (new home construction only)
Other documentation you may have to provide (at least two of the four):
- A copy of your current drivers license with your new address,
- A copy of a recent pay stub showing your name and home address,
- A copy of a recent bank statement showing your name and home address,
- A copy of a current automobile registration with your name and home address.
Here's a few more things I learned at tax class today:
- The First Time Home Buyer Credit is claimed on Form 5405.
- Processing takes additional time. Returns with the First Time home buyer tax credit on them MUST BE MAILED IN. NO ELECTRONIC FILING which means no RAPID REFUNDS. Expect the return to take 6 to 8 weeks to process. Update: I learned today the IRS will not begin issuing FTHB checks until March.
- If you want/need to get your regular refund quickly you can e-file your tax return without the credit and then amend the return to claim it later.
- If a home was purchased by two or more unmarried persons he credit can be divided between the two in any reasonable way.
- A first time home buyer is someone who did not have an ownership interest in a principal residence for three years prior to the new purchase. If you had a rental property, evidently you could have and still can purchase your principal residence and get the credit.
- A home acquired by inheritance does not qualify.
- A home acquired from a related party does not qualify.
- There are special rules for members of the military.
- 1) Recapture is not required if the individual is assigned to qualified extended-duty service.
- 2) Eligibility is extended to May 1, 2011 if closed before July 1, 2011.
You might have to pay the money back if you do one of these things within 36 months of buyng the home:
- If you sell to a family member
- If you sell and make a profit
- If you no longer occupy the house (turned it into a rental)
Here's a link to more information on the credit: First Time Home Buyer Tax Credit
Check out my First Time Home Buyer Information
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Albuquerque Realtor Rich Cederberg works for RE/MAX Finest in Albuquerque New Mexico. Previously Rich worked for RE/MAX Elite and the Vaughn Company Realtors for 5 years. He specializes in Albuquerque Real Estate, Northwest Albuquerque Real Estate, Rio Rancho Real Estate and Los Lunas Real Estate. He especially enjoys working with First Time Home Buyers. Call 505.803.5012 or email Rich Cederberg if you need a Albuquerque REMAX agent.
