From Brandon:
As we wind down to the expiration – again – of the first-time buyer credit, I thought it would be a good chance to recap some of the questions we keep hearing in my office regarding the credit. Don’t wait until the last few days to get serious …
If you’re looking at taking advantage of either the $8000 first-time buyer credit or the $6500 move-up credit, you must meet these guidelines:
- Must sign a contract by close of business on April 30th 2010 and close by close of business on June 30th 2010
- Must be your Primary Residence
- Must close before claiming credit
- Must file IRS 5405 with the tax return and you must attach a copy of your settlement statement to the return
- There’s no need to repay the credit unless one of the following take place:
- You convert home to rental or business use within 3 year period
- You sell home within 3 years
- You foreclose on home within 3 years
People are asking questions about audits. While I’m not a tax attorney – and I’d recommend consulting one – you’ll probably need:
- Mortgage statement with the property address
- Automobile registration matching property address
- Bank statement matching property address
- Pay-stub matching property address
Resources: If you have questions go to IRS.gov and search “first time homebuyer credit“. If I can be of assistance, please contact me and let’s see how we can help.
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Brandon is a branch partner at Alcova Mortgage. He enjoys doing his taxes, firewalking and competitive eating, but not necessarily in that order. You can reach him at brandon@alcovamortgage.com, or 877-552-7150.
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