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IRS clarifies the tax-credit paper chase

By
Real Estate Broker/Owner with Highland Realty, Inc 0225 099336

Real Estate columnist Ken Harney thinks the IRS may be on track to finally helping people understand what exactly needs to be filed in claiming the $6,500 and $8,000 buyer credits.

Here's what's needed:

  • A fully executed IRS Form 5405 (available at IRS.gov) on which taxpayers provide basic information supporting their claim of eligibility including income and home purchase date.
  • A copy of the settlement statement proving that the sale and purchase transactions actually took place
  • Normally, they want all parties to the transaction to sign the HUD-1 or Settlement Statement. In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is "completed and valid according to local law".

Dave Rosenmarkle

Broker/Owner

Highland Realty

Arlington, VA  22207

703-538-2566

davidrose@mris.com

www.HighlandAgents.com

 

Cherry Wings Realty
Cherry Wings Realty - Traverse City, MI
Your Traverse City Michigan Realtor

Dave:

Good information to know.  Sometimes we never know what the IRS is thinking.  Love the house.

Feb 19, 2010 11:02 PM
Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

Clear, clean, and very informative post. Thanks for sharing

Feb 19, 2010 11:10 PM
Dennis Duvernay Broker/Owner
Hillview Realty - Northbridge, MA

Great pic Dave....I think more and more buyers now realize that although a great program (the tax credit) you don't have to jump through hoops for the credit but do have to follow instructions....thanks for the info

Feb 19, 2010 11:11 PM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Thanks for sharing this information. Love the picture

Feb 19, 2010 11:24 PM