Yikes! The IRS is at it again. I've been having my first time home buyers visit my CPA referral partner to re-file amended 2008 tax returns to claim the $8000 tax credit - averaging about six to eight weeks to get their money. Throughout 2009 everything was working like a honey until..... November 7, 2009 - the extension date of the FTHB tax credit. The IRS is updating Form 5405 (the form needed to claim the credit) but hasn't made it available (yet).
WHAT THIS MEANS TO YOU!
Clients who purchased a home AFTER November 6th, must wait until the REVISED Form 5405 is available BEFORE claiming the $8000 (or $6500 move up) tax credit. This can be "sticky" if the FTHB is receiving gift funds with the intention of paying them back with the tax credit proceeds (as is the case with one of my clients). Please read this below and educate yourself - see my website at www.utahloanplan.com for more info or call me directly at 801.983.8211 to discuss.
Information regarding the 2008 Form 5405,
First-Time Homebuyer Credit
Changes have been made to the first-time homebuyer credit by Public Law 111-92, the Worker, Homeownership, and Business Assistance Act of 2009, which was enacted on November 6, 2009. As a result, this 2008 Form 5405 can be used only for homes purchased before November 7, 2009, for which you choose to claim the credit for 2008. We will issue a December 2009 revision of Form 5405 to reflect the new law. The December 2009 revision must be used for all homes purchased after November 6, 2009 (whether the credit is claimed for 2008 or for 2009) and for all claims on 2009 returns for homes purchased any time in 2009 or in 2010. We expect to post the new revision of Form 5405, and its new separate instructions, on IRS.gov by January 8, 2010.