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Home Buyer Tax Credit

Posted Saturday, July 10, 2010

Home buyers that have enteredinto a contract on a home purchase by April 30, 2010, but having a problemsetting up a closing before June 30th, the required 60 days, now has anadditional 90 days to close and qualify for the Home Buyer Tax Credit. The newbill does not allow an extension for home buyers to enter into a contract. Itonly extends the deadline from June 30th to September 30th.
The extension is estimated to help about 200,000 home buyers that wereconcerned that they had already signed a purchase agreement and would miss thedeadline to close the contract.


Form 5405, the First Time Home Buyer Credit and Repayment ofthe Credit, must be filled out along with at least one of the followingdocuments:
The settlement statement including all parties’ names and signatures, ifrequired by local law, the property address, the sale price, and the date ofpurchase. Form HUD-1, Settlement Statement.


Mobile home purchasers arerequired to obtain a copy of the signed executed retail sales contract showingall parties’ names and signatures, the property address, the purchase price andthe date of purchase. Newly constructed home purchasers are required to obtaina copy of the certificate of occupancy from the county and city offices showingthe owner’s name, the property address and date of the certificate.
Existing home buyers must provide proof that they lived in their old homes forfive years during the eight-year period ending on the purchase date of the newhome, by providing Mortgage interest statements, Property tax records orHomeowner’s insurance records.


Toclaim the Home Buyer Tax Credit on a qualifying 2010 home purchase threeoptions that can be utilized. Use the Form 1040 for tax-year 2009. You will notbe able to file electronically, but taxpayers can still use IRS Free File toprepare their return. You must print the form out and send it to the IRS, alongwith all required documentation. It is best to choose Direct Deposit for anyrefunds.
There is an amended return, Form 1040X, for those that have already filed areturn for 2009. If you need additional time you can wait until next year andclaim it on a 2010 Form 1040.