First-Time Homebuyer Credit- Did you Miss it?

The First-Time Homebuyer Tax Credit was extended and expanded November, 2009. At the same time, the requirements became more stringent and more documentation is now needed to claim the credit. If you act quickly, you still have a chance to claim the First-Time Homebuyer tax credit this year, but the IRS is increasing their compliance checks, so be sure to have all necessary documentation if you don't want to slow down your tax refund!


For Qualifying Home Purchases in 2010

For qualifying purchases in 2010, you have the option of claiming the credit on either your 2009 or 2010 return.

First Time Homebuyer Tax Credit Deadlines

- You must have bought — or entered into a binding contract to buy — a principal residence on or before April 30, 2010.

-If you entered into a binding contract by April 30, 2010, you must close (go to settlement) on the home on or before June 30, 2010.

Filing Requirements for your 2009 Tax Return

Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2009 tax return must file a paper — not electronic — return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (see the instructions for help with the form), and a properly executed copy of a settlement statement used to complete the purchase.

- Purchasers of conventional homes should include a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties' names, property address, sales price and date of purchase.

- Purchasers of mobile homes who are unable to get a settlement statement should include a copy of the executed retail sales contract showing all parties' names, property address, purchase price and date of purchase.

- Purchasers of newly constructed homes where a settlement statement is not available should include a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.