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Five
Tips About the First-Time Homebuyer Credit Documentation Requirements
Are you confused about the documentation requirements
of the First-Time Homebuyer Tax Deduction?
Taking the First-Time Homebuyer Tax Deduction on your 2009 income tax return may result in a bigger refund but it can seem complicated. The Internal Revenue Service acknowledges that the settlement documents may vary from location to location, so here are 5 tips to clarify the documentation requirements.
Here
are the top eight things the IRS wants you to know about the HCTC:
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Settlement
Statement: Buyers of conventional homes must attach a copy
of Form HUD-1 or other properly executed Settlement Statement.
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Properly
Executed Settle Statement: Typically, a properly executed
settlement statement depicts all parties' names and signatures,
property address, sales price and date of purchase. However,
settlement documents, including the Form HUD-1, may deviate
from one location to another and might not include the signatures
of both the buyer and seller. In areas where signatures are
not required on the settlement document, the Internal Revenue
Service recommends buyers to sign the settlement statement
as they file their tax return -- even in instances where the
settlement form does not include a signature line.
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Retail
Sales Contract: Buyers of mobile homes who are unable to get
a settlement statement must include a copy of the fulfilled
retail sales contract showing all parties' names and signatures,
property address, purchase price and date of purchase.
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Certificate
of Occupancy: For new home construction, when a settlement
statement is not available, attach a copy of the certificate
of occupancy demonstrating the owner's name, property address
and date of the certificate.
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Long-Time Residents: If you are a long-time resident claiming the tax credit, the Internal Revenue Service advocates that you also attach documentation covering the five-consecutive-year period such as Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner's insurance records. |
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us today at 713-661-1040 and let us put our experience to work
for you. Protecting your bottom line is our top priority!
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Tax Tip Of The Week!
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