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:

1. Must sign a contract by close of business on April 30^th 2010 and close by close of business on June 30^th 2010
2. Must be your Primary Residence
3. Must close before claiming credit
4. Must file IRS 5405 with the tax return and you must attach a copy of your settlement statement to the return
5. 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:

1. Mortgage statement with the property address
2. Automobile registration matching property address
3. Bank statement matching property address
4. 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.