Two Important IRS Clarifications for Claiming the Tax Credit
Posted by Benjamin Dona on Friday, February 26th, 2010 at 4:27pm.
The Internal Revenue Service (IRS) has finally announced two important clarifications regarding the documentation required for taxpayers seeking to claim the first-time and move-up homebuyer tax credits. Local guidelines, especially for closing statements have caused a lot of confusion for both claimants and their tax preparers.
The IRS announcement said that while they still are requiring the filing of Form 5405, they are no longer demanding that all parties’ signatures be on the HUD-1 settlement statement in areas where the buyer and the seller signatures are not common practice. However, they are encouraging all buyers to sign the settlement statement prior to attaching it to the tax return.
For repeat buyers, the IRS is seeking documentation that proves they lived in their previous property for a consecutive five of the past eight years. Such proof can include property tax receipts, homeowner insurance records, or mortgage statements.
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About the Author
Benjamin Dona is the Broker and Owner of Gulf Coast Associates, Realtors in Bonita Springs, Florida. He holds two advanced degrees, an MBA and an MA, and has an extensive background in both business and marketing. In 1998, he founded Gulf Coast Associates, and formed a group of like-minded Realtor® associates dedicated to offering professional Southwest Florida real estate services by concentrating on information, education and the use of leading edge technologies. He also is a recognized expert on the "Net," a much-quoted and read blog author, and a contributor to both national and international news outlets. Benjamin is a member of the National Association of Realtors, the Florida Association of Realtors, and numerous local real estate boards throughout Southwest Florida.
Contact Benjamin Dona at 239-948-3955
Southwest Florida Real Estate Blog
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