How to Claim the Home Buyer Tax Credit

Although, the federal home buyer tax credit may be over, home buyers who want to claim the tax credit on their 2009 tax return must do so on paper—not electronically. This is required by the IRS so a taxpayer can attach the necessary documentation to their tax return.

If you are in need to file your claim, you will need a Form 5405,First-Time Homebuyer Credit, which must be submitted in paper form along with the tax return and a copy of the settlement statement that shows the completed home purchase.

If the property is new construction, a settlement statement would be unavailable but the taxpayer/home buyer can substitute a copy of the certificate of occupancy. To satisfy the requirements the certificate must show the homeowner’s name, property address and certificate date.

To claim the longtime residents home buyer tax credit the IRS will ask for a home buyer to attach five years of Form 1098, mortgage Interest Statements, property tax records or homeowner’s insurance records.

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If you have been patiently waiting to buy a Hoboken home, now is the time to do it. All of the key factors are in place to ensure that your home purchase will be a major, positive life changing event.  With low mortgage rates available, along with the recent passing of the new tax credits, this is the opportunity you have been waiting for. Make 2010 the year you purchase your dream home. For more information contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City.  Eddie can be reached at mailto:eddie@InvestHoboken.com or 201-344-2886