The first time homebuyers tax credit - Important Tax Filing Information
Whether you would be applying for the $8,000 tax credit or the $6,500 tax credit, you need to be aware of a few important pieces of information regarding the tax credit that was extended last year.
Important Dates : You have to be in a binding agreement of sale by April 30th, 2010. And keep in mind, it has to be signed by all parties involved and date stamp. This even means if the property is a bank owned property, that the bank has to have signed off on it also.
The purchase has to be completed/closed by June 30th, 2010.
CPA Shares Little-Known Facts About the 2009 Home Buyer Tax Credit Extension - By Doug Geissler, CPA
Doug Geissler has stated that the Internal Revenue Service is literally writing the "refund rules" as they go along. One of the main reasons for this is because of the fraud that has taken place from the previous years tax refunds. Many people were claiming the tax credit who never eevn bought a home or who had filed the tax credit under someone elses name. So overall, what you could do last year, might have changed for this years tax returns when filing for your tax credit refund.
So, what things should you be aware of?
- You can't file an EZ form or even file your tax return electronically. - Why not? The government never had anything in place to determine if you did buy a home or not. There wasn't even any auditing software in place for the IRS to check any of this.
- The IRS now requiring the HUD-1 or closing statement to be attached to form 5405. So that means this form can't be attached electronically, hence why the tax credit can't be filed electronically now. Here is the form and the instructions, Form 5405.
- The refund time frame has been listed now as 16 weeks for a turn-around time. Mr. Geissler has stated that just previously, a client of his was asked for additional information such as a letter from the landlord and the driver's license from the person claiming the tax credit. The news laws to say that the IRS can request extra documentation.
Overall, buyers need to be aware of these changes, that there could be delays if expecting a normal refund also, and speak to a qualified tax accountant or CPA. Here are 2 links to the buyers tax credit :
_____________________________________________________________________________________________________
FOLLOW ME ON FACEBOOK
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- FHA Home Loans - Mortgages -
Experience & Knowledge at its BEST !!!
_____________________________________________________________________________________________________
For more information on FHA loans, please go to this link. The FHA Expert
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!
Important Information about the First Time Homebuyers Tax Credit
Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc
_____________________________________________________________________________________________________________________________
FOLLOW ME ON FACEBOOK
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- FHA Home Loans - Mortgages -
Experience & Knowledge at its BEST !!!
Follow me on:
______________________________________________________________________________________________________________
For more information on FHA loans, please go to this link. The FHA Expert
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!
For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors
Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc
Jeff, I have reblogged this. Buyers do need to take note of the 4/30/10 date. And as you say, the contract has to be totally complete by that date not in negotiations. I will also say that Buyers should not use the incentive just to buy before the deadline. They need to find the right home for their family. Knowing they could recieve this incentive might allow them to make a stronger offer and not lose out to another bidder on the home.
Oh for crying out loud! This is typical government crap. *sigh* I still say we need to get rid of the whole lot of them and start over! This kind of stupidity if just another reason why.
EXCELLENT INFO! I know the system was choked up last year for a couple of months. I am sure they were instituting these changes at that time. Absolutely unreal!
It took some time, but I am working with a few of these First Time Home Buyers. There are 5 trying to get into a contract April 30th.
It took some time, but I am working with a few of these First Time Home Buyers. There are 5 trying to get into a contract April 30th.
Thanks for sharing this important information for buyers. I am still trying to sell that condo in The Clusters - this no FHA thing is a killer!
Jeff,
The Tax Credit really has been an example of "write-a-law-and-then-make-it-work. It pays to stay current to insure capturing the Credit.
Steve
Jeff,
Thanks for the informative post. I've re-blogged already - I've had several calls in the last week asking for details and you've got it all right here.
Our government at work? Sounds like fraud city. Cannot wait for the Obama Care to kick in. No wonder he needs 16,000 new IRS agents for the red states.lol
Very good bullet points to remember. After all the hype there is STILL some confusion or gray area in many consumers minds.
Nice summary brutha !
Jeff ...I reblogged ..thanks great info