IRS Oversight of the Tax Credits

By
Real Estate Agent with Windermere Cornerstone

The IRS is taking an active role in oversight of the home buyer tax credit - both the $8,000 and the $6,500 - to stop bogus claims.

To get the credit, filers must attach more documentation to Form 5405. A signed copy of the settlement statement must now accompany the form. Mobile home buyers who don't have that document should include a signed sales contract. Likewise, filers who have a residence built for them should instead attach a copy of the certificate of occupancy to their Form 5405.

The Service also wants information from buyers who are claiming the $6,500 credit. They should enclose Form 1098 or records of property taxes or insurance coverage to document that they owned a home for five consecutive years out of the last eight.

For more information on the Tax Credits Visit our website at www.HappyHomesTeam.com

Comments (0)