Here's What You'll Need to Claim Your $8,000 First Time Home Buyer Tax Credit

Ready to claim your First Time Home Buyer Tax Credit? 

Here's what you'll need to have ready to send in with your tax return:

• A copy of your HUD-1 settlement statement with all parties signatures, the property address, the seller(s) and buyer(s) names and the purchase price. ( You should have left closing with the HUD-1)

• A copy of your most recent monthly mortgage statement, and

• A copy of the occupancy permit (new home construction only)

Other documentation you'll also have to provide (at least two of the four):

• A copy of your current drivers license with your new address,

• A copy of a recent pay stub showing your name and home address,

• A copy of  a recent bank statement showing your name and home address,

• A copy of a current automobile registration with your name and home address.

Here's a few more things I learned at tax class today:

• The First Time Home Buyer Credit is claimed on Form 5405.

• Processing takes additional time. If you want to get your regular refund quickly you'll need to file your tax without the credit and then amend the return to claim it later. 

• If a home was purchased by two or more unmarried persons he credit can be divided between the two in any reasonable way. 

• A first time home buyer is someone who did not have an ownership interest in a principal residence for three years prior to the new purchase. If you had a rental property, evidently you could have and still can purchase your principal residence and get the credit. residence.

• A home acquired by inheritance does not qualify.

• A home acquired from a related party does not qualify.

• There are special rules for members of the military. 1) Recapture is not required if the individual is assigned to qualified extended-duty service, and 2) Eligibility is extended to May 1, 2011 if closed before July 1, 2011.

Here's a link to more information on the credit: First Time Home Buyer Tax Credit

 

Are you a First Time Home Buyer in Albuquerque? Check out my First Time Home Buyer Information

Search Albuquerque NM Homes for Sale  

 

 

Albuquerque Realtor Rich Cederberg works for RE/MAX Finest in Albuquerque New Mexico. Previously Rich worked for RE/MAX Elite and the Vaughn Company Realtors for 5 years. He specializes in Albuquerque Real Estate, Northwest Albuquerque Real Estate, Rio Rancho Real Estate and Los Lunas Real Estate.  He especially enjoys working with First Time Home Buyers. Call Rich if you need a Albuquerque REMAX agent.