FINALLY! The IRS is (NOW, TODAY, FOR REAL) ready for your clients to file for their $8000 or $6500 FEDERAL INCOME TAX CREDIT for purchases made after November 6, 2009.

HEAR YE!  HEAR YE!

The Internal Revenue Service has just published (at long last)

the newly revised (and more complicated)

Federal Tax Form 5405

which will be used by individuals claiming

the $8000 Tax Credit for First-Time Buyers

and

the $6500 Tax Credit for Long-Time Residents

for purchases made after November 6, 2009

(when the extension of the old and the creation of the new was signed into law).


Here are the links to the IRS website:

For the new Form 5405


For the Form 5405 Instructions


Please note:  This form will also by used to repay the credit if you move from your new home within three years.


Check back to this blog in the next few days for hints about the completion of this form ...

... and for filing Form 1040X to amend your 2008 Tax Return

(for purchases that closed November 7 to December 31).

At first glance, it does not appear that it is necessary to attach a copy of your HUD-1 (closing statement)  to the Form 5405 if you are claiming the credit against your 2008 taxes.  But you might want to attach it anyway.  Attaching the form is clearly required for claiming the credit for tax year 2009.

See your tax advisor if you have questions.  But filing this form or a 1040X is really not difficult.

 ************

Jim Hale

Principal Broker

Graduate, REALTOR Institute                e-PRO
actionagents.net
1715 Linnea Avenue
Eugene, OR 97401-1962

Office:  541-484-0219
Direct:  541-543-9991
Fax:      541-485-8068

www.actionagents.net                jim@actionagents.net

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