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How to File for $8,000 Tax Credit

By
Industry Observer with Swanepoel T3 Group

From CNNMoney.com, we have just learned that the way the IRS is "handling" the tax credit is turning into yet another stumbling block to helping the real estate market recover. This seems to me to be so unfair! Anyone who qualified for the credit probably could really use that money, whether to repay mom and dad for the down payment loan or as cash to repair that fixer-upper they bought. I'm going to email the article and link this out to my clients IRS Form 5405.

Home Buyer Tax Credit: No e-file and four month delays

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By CNNMoney.com Les Christie staff writer

NEW YORK (CNNMoney.com) -- Good news homebuyers: You can file for your $8,000 first-time buyer tax credit again. Bad news: You still can't e-file your taxes if you want the cash. And there are long delays.

On Thursday, CNNMoney revealed that buyers who purchased their properties after Nov. 6 were unable to claim the refund because the Internal Revenue Service had yet to release a new form and instructions. But on Friday, the IRS finally posted the new form 5405.

The two-month delay was frustrating to Florida resident Charles Teschke. "We are not broke or anything, but nevertheless we were still counting on getting the tax refund to help pay for the appliances and stuff we needed for our new home," he said. "The IRS told me they estimate it will take four months for me to get my refund!"

First-time buyers were able to immediately file for the tax credit after Congress approved it last February as part of the stimulus program. All they had to do was file an amendment to their 2008 tax returns (the ones they filed last April) and claim the promised refund of 10% of the purchase price, up to $8,000.

 

Christine Bohn
RE/MAX Professionals - Gainesville, FL
The Bohn Team, Gainesville FL

Thanks for this post!  I will be re-blogging it too.  I've added the form to my links also.  

Jan 19, 2010 04:28 AM
Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

thanks Leslie for the info, hopefully they'll get their act together soon.  They're going to have to as there probably will be another round of credits coming...

Jan 19, 2010 05:01 AM
Nancy Conner
Olympia, WA
Olympia/Thurston County WA

Thanks for the info - I will pass this along to my clients right away!

Jan 19, 2010 05:29 AM
Steven Beam
RE/MAX Alliance - Parker Colorado Real Estate. - Parker, CO
Parker Colorado Real Estate

Just more proof that if the government would stay out of the way and out of our business we would all be much better off.

Jan 19, 2010 05:36 AM
Aaron Cullen
Brokers Inc. Residential Real estate - Folsom, CA
Folsom, El Dorado Hills & Sacramento Real Estate &

Great article.  Better late than never... right?

Jan 19, 2010 05:56 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

News of the wait time is discouraging, but some news is better than no news.  I'll pass it along to my buyers so they can be prepared.  Thanks.

Jan 19, 2010 05:56 AM
Tina Farinas
Fusion Real Estate Network, Inc. - Roseville, CA
REALTOR, ABR, GRI, SFR, CHS, e-PRO

Great information. Thanks for sharing.

Jan 19, 2010 06:44 AM
Kris Wales
Keller Williams Realty - Lakeside Market Center - Macomb, MI
Real Estate Blog & Homes for Sale search site, Macomb County MI

It's because initially the IRS didn't require proof of purchase that this is now happening.  Now you have to send in HUD 1 statement or something to prove you actually purchased a home.  Then, the files are handled by real hands (not just computer scanners).  Yes, it takes time.  But I'm of the feeling that it's worth it if it prevents rampant fraud.

Jan 19, 2010 06:59 AM
Trisha P Realty Group
Realty Executives - Leavenworth, KS
"Holding the Keys to Your Dream Home"

Thanks for the info - Ill pass it along.

Jan 19, 2010 07:28 AM
Martin E. Kalisker, Esq.
Natick, MA
Real Estate Law From A Practical Perspective

You can thank all of the people who abused the system in the past.  Instead of taking your word for it, the IRS is now asking for proof that you purchased a home and that you actually qualify!  Nothing like closing a loophole!

Jan 19, 2010 08:26 AM
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

Leslie, thanks for the info. Like some of the others I have people asking about this.

Jan 19, 2010 08:40 AM
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

I like the post today.  Thanks so much for getting it out to us today.

Patricia/Seacoast NH

Jan 19, 2010 10:42 AM
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

The IRS you got luvum. Anything to hold the money just a little longer.

Jan 19, 2010 11:53 AM
John Queenan
CDPE, Nicholas H. Fingelly Real Estate - Sandy Hook, CT

Thanks Leslie, great post.

So much fraud on the first go around due to no checks and balances, so now we'll go overboard in the other direction. I had clients getting the prior refund in 3-4 weeks, apparently that's a thing of the past.

Jan 19, 2010 12:32 PM
Vickie McCartney
Maverick Realty - Owensboro, KY
Broker, Real Estate Agent Owensboro KY

Leslie~  Thanks for sharing this with us.  I am going to re-blog this too! 

Jan 19, 2010 01:26 PM
Roland Woodworth
Blue Cord Realty - Clarksville, TN
Blue Cord Realty

Thanks for sharing this information.. People really need to know this when filing for thetax credit.

Jan 19, 2010 03:50 PM
Gabrielle Nemes
RE/MAX Realty South - Tumwater, WA
206.300.8421, S King & Pierce County RE Advocate

Thanks for the link to the new form. I'd heard that this was taking quite a while, but didn't realize it was as long as four months!

 

Jan 19, 2010 04:22 PM
Sandy Shores FL Realtor®, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County Real Estate, Florida's Space Coast

Leslie, Thanks for the information. I will pass it along to my recent buyers.  Terrible to hear that buyers are having to wait 4 months. 

Jan 20, 2010 06:05 AM
Ryan Cha
RC Edwards Realty Dallas/Fort Worth, Texas - Dallas, TX
Broker

Thanks Leslie, I too was not aware of the delay to get the money.  I'm e-mailing my client the form now.  I just tweeted your blog.

Jan 27, 2010 02:29 AM
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

Thanks for sharing and should be a great repost. We are trying to get the word out and this certainly helps.

Feb 16, 2010 12:52 PM