Tuesday Tax Time: The Home Buyer Credit (Again) Edition

This has come up before, but there are some rules you need to know about the Home Buyer Credit:

1.  We can’t efile your return if you are claiming the Home Buyer’s Credit because the IRS is making us attach the settlement statement to your return.  Dang.  *there goes all those fraudsters that would buy up a bunch of houses just to get a $6,500 credit*

2.  If it’s a mobile home (thus, the pic of my summer home to the left), then there is no settlement statement… you gotta produce something!  Include the signed sales agreement with the return or something to keep the Agency off your back.

3.  Building a home?  First, you better talk to your tax preparer and make sure you move in on the right day… if you don’t, it could cost you the credit.  Second, go ahead and bring the Occupancy Certificate to the tax meeting while you’re at it so we can attach that to the tax return too (I ain’t kidding).

4.  If you are taking the $6,500 Home Buyer’s Credit (where you have to live in your current home for 5 out of the last 8 years), then prepare to prove it.  I’m talking records of property tax statements, proof of insurance coverage, etc.

5.  And since everything is getting sent via snail mail, the IRS is ramping up their staff to handle the deluge of paper returns.  The Agency won’t start processing returns with the Home Buyer’s Credit attached until mid-February (so it’s just about time).  I think they are reprogramming their computers or something like that.  Don’t expect your check anytime soon… it’s going to take longer to stuff the envelopes.  Don’t hate.

Thanks, Jason M. Blumer

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