Claiming the Homebuyer Tax Credit on 2009 Tax Returns

I've been receiving many questions about how to claim the Homebuyer Tax Credit on your 2009 Tax Returns. The IRS announced some new rules and regulations on how to do this on January 19, 2010. Here's a quick run down.

First, you must fill out and turn in Form 5405, thew new First Time Homebuyer Tax Credit form. Then you have to turn in the following:

* 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.

Normally, it takes about four to eight weeks to get a refund claimed on a complete and accurate paper return where all required documents are attached. For those homebuyers filing early, the IRS expects the first refunds based on the homebuyer credit will be issued toward the end of March.