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Important IRS updates on claiming the home buyer tax credit
Important IRS updates on claiming the home buyer tax credit
have recently been announced, and you may want to alert your potential customers. The agency has published an updated version of Form 5405 as well as instructions for home buyers using it to claim the $8,000 first-time buyer credit as well as repeat buyers seeking to claim the $6,500 credit. Updates to the form include the extended purchase date window (tax credit-qualified homes must be under contract prior to May 1 and close before July 1). And yes, even though the revised Form 5405 still references the “First-Time Homebuyer Tax Credit,” it is also intended to be used by repeat home buyers, who must have lived in a single principal residence for five of the last eight years prior to purchasing their new home for which they plan to claim the tax credit.
Beyond these updates, the IRS is also requiring additional documentation for home buyers who claim the credit for purchases after Nov. 6, 2009. Buyers must now provide a copy of the HUD-1 form or, in cases where that form is not used, a certificate of occupancy for a newly constructed home. For purchases taking place after April 30, a copy of the signed sales contract must also be supplied. Meanwhile, in order to claim the $6,500 repeat buyer tax credit, home buyers must attach one of the following for five consecutive years of the last eight to demonstrate that they meet the repeat buyer qualifications: a Form 1098 reporting mortgage interest; a property tax statement; or home insurance records.
Tax credit buyers should also know that, due to the new documentation requirements, those claiming either the $8,000 first-time home buyer credit or the $6,500 repeat-buyer credit cannot e-file. As a result, taxpayers should be prepared to wait at least 12 to 16 weeks to receive their refunds. On a final note, NAHB has recommended options to Treasury and IRS officials for homebuyers who do not use a HUD-1 form and whose local jurisdiction does not issue a certificate of occupancy. We are awaiting their response at this time. Get more information on NAHB’s consumer tax credit Web site at: www.federalhousingtaxcredit.com
Eddie Adkins builds a snow mountain in Clovis NM for neighborhood kids of all ages Jan. 29,2010
Local builder in Clovis NM builds a snow mountain for neighborhood kids
Local Builder, Eddie Adkins, helps clear streets and driveways after freak storm hits Clovis, NM.
Does your builder shovel your driveway?
Military discount to end soon! Take advantage now.
With so many good deals out there now is really the time to buy a new home. New homes have the most current energy efficient technology versus existing homes that you will save much more money on utility bills allowing you to put more money in savings or put more money toward your payment allowing you to buy a bigger and better home…maybe in a nicer neighborhood.
Then, you can’t deny the lowest interest rates in history are available right now! Some experts insist that inflation and interest rates could go up into the double digits like they did after the depression in the 70’s and 80’s. We saw 18% then! Don’t get stuck in an adjustable mortgage!
Also, if you qualify for the Tax credit you can get a $6500 rebate from the Federal Government if you have been in your current home for 5 years or more and make less than $245,000 a year…(please see www.nahb.org/generic.aspx?sectionID=1780&genericContentID=130361 your tax professional for current information. All of this has a deadline and Adkins Construction Inc. must have a deadline on its military discount as well. February 28th, 2010 will be the last day for the military discount. Congratulations to the Stubbs on their new home and use of this discount. We welcome them into the neighborhood and into the Adkins Family of Home buyers. They are great people and I am sure they will enjoy their new ENERGY STAR HOME! They are the first people to take advantage of our military discount and the 2nd to buy an Adkins certified ENERGY STAR home. Come see the difference in new home by Adkins. (This military discount is only valid on new homes that are complete…it is not available for homes that are currently in the planning process or are being framed, built, etc.)
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