The new forms to submit when claiming the first time homebuyer tax credit have finally been released! Form 5405 will now be needed when submitting a tax claim, and this is likely mainly due to the large numbers of tax fraud we were experiencing in res
ponse to the First Time Homebuyer tax credit. Please be sure to file this along with your claim, so you don’t experience any sort of delay in claiming your credit!
From the Washington Post coverage of the new forms…
“Form 5405, First-Time Homebuyer Credit and Repayment of the Credit” can be downloaded from the IRS web site.
First-time buyers will have to send a copy (keep your originals!) of one of these documents to back up their claim to the tax credit:
- A copy of their HUD-1 Settlement Statement, complete with dates and signed by all parties.
- Mobile-home buyers can send in a copy of their signed, dated and fully executed sales contract.
- New-home buyers who don’t have a HUD-1 settlement statment must send in a copy of the certificate of occupancy.
All of these documents need to show names, dates, addresses, signatures, and prices.
The experience of my clients thus far has been that getting the credit has been fairly painless. I hope that this will continue through the extension of the credit in 2010, but I would love any feedback you may have!
[Photo Credit: The Backyard Wealth Blog]