Thursday, July 15, 2010

Attention First-Time Homebuyers!

Cross-posted from PathWays PA's Resource Library Blog.

You may still be able to claim the first-time homebuyer credit! The recently enacted Homebuyer Assistance and Improvement Act of 2010 extends the closing deadline for first-time homebuyers from June 30 to September 30, 2010.

What does this mean? It means if you entered into an agreement to purchase your home on or before April 30, 2010, and are set to close on the purchase of the home before September 30, 2010, you can still receive the credit.

Special filing and documentation requirements still apply. In order to receive the credit, eligible taxpayers must complete Form 5405 and provide one of the following documents:
  • A copy of the settlement statement;
  • A copy of the executed retail sales contract (for mobile home purchasers only); or
  • A copy of the certificate of occupancy (for newly constructed homes that do not have a settlement statement).
There are 3 options for claiming the credit on a qualifying 2010 purchase:
  • If you haven't filed your 2009 taxes yet, you can claim the credit on Form 1040 for the 2009 tax year. You can use IRS Free File to prepare the return, but you must print the return and mail it to the IRS with a copy of the required documentation described above;
  • If you have already filed your 2009 taxes you can claim the credit on an amended return using Form 1040X; or
  • Regardless of whether or not you have filed your 2009 taxes, wait until next year and claim the credit on your 2010 taxes using Form 1040.

More details on claiming the credit can be found in the instructions to Form 5405, as well as on the First-Time Homebuyer credit page on the IRS.gov website.

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