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KatyHomeFinder - Caution for Folks Who Utilized Home Buyer Federal Tax Credit
It is my understanding that the Internal Revenue Service is seriously increasing its efforts to fight fraud in the home buyer tax credit area. The IRS is in the process of adding staff from other sectors so that they can audit over 200,000 tax returns where the home buyer tax credit was taken. All first time home buyers and folks who already owned a home have to include with their tax return a copy of the HUD1 or Settlement Statement. If you plan to file for your tax credit while filing your 2010 FIT return remember to include a copy of this document along with Form 5405. A copy of the settlement statement should be in the packet or binder the Title Company gave you at closing. Those folks who already owned a home and purchased a new residence need to include copies of proof of owning the same home for five consecutive years out of the last eight years. The credit amount maximium for these folks is $6,500.  Proof of ownership can be establish with including copies of local real estate tax bills, insurance bills, utility bills, etc. as supporting documentation and filed with your return.
The best tax advice I give anyone ... more

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