A question came in for Brandon Nicely on the blog over the weekend from Josh. He wrote:
Q: Brandon, what problems have you seen first-time buyers experience in applying for their tax credit?
A: By now, most everyone has seen the basics of the tax credit:
- Sign a contract by April 31st, and close by July 1st
- If you haven’t owned a home for the last three years you’re eligible for up to $8000 back, and up to $6500 if you’ve owned your principle residence for 5 out of the last 8 years
- No repayment necessary if you live in the house for at least 3 years
- You can file an amendment to your 2009 tax return, and get the funds this year
That stuff’s simple. But some of the information on the tax credit is not quite as clear. Here are some other points to remember:
- You must file IRS Form 5405 with your tax return, and attach a copy of your settlement statement
- Must close on the new home before claiming the tax credit on your tax return
- It must be a primary residence (no second home or investment properties qualify)
- Properties purchased from a family member, or in-law, do not qualify
Feel free to call or email me if you have further questions, or need help obtaining the credit!
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Brandon is a branch partner at Alcova Mortgage. He enjoys doing his taxes, firewalking and competitive eating, but not necessarily in that order. You can reach him at brandon@alcovamortgage.com, or 877-552-7150.