If you were a first time homebuyer in 2009 and you fell within the IRS tax credit rules, you can claim that $8000 tax credit on your ‘09 returns. The IRS has very specific rules on how to claim the credit though, and you will want to make sure you do it right. Your tax accountant will be able to guide you, but if you file your own taxes, be aware of the following:
- You will not be eligible to e-file your returns
- You must complete and include Form 5405
- You must include supporting documentation along with Form 5405 (this is the reason you cannot e-file). The documentation is:
- A copy of your HUD-1 Settlement Statement with both parties’ signatures (yours and the sellers).
If you are eligible to claim the “long time resident” homebuyer tax credit of $6500, you will need to provide the following documentation:
- A copy of your HUD-1 Settlement Statement with both buyer and seller signatures
In addition to the HUD-1, you also will need to prove that you were indeed a homeowner for any 5 consecutive years in the previous 8-year period by providing one of the following:
- Form 1098 (your Mortgage Interest Statement)
- Property Tax Records
- Homeowner’s Insurance Records
I am not a tax advisor, so this information is only intended to guide you. Please speak with your CPA and/or carefully review IRS instructions for how to properly file for your tax credit.
