2010 First Time Homebuyers Tax Credit - Little known facts about the 2009 tax credit extension

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Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

 

Tax Credit

The first time homebuyers tax credit - Important Tax Filing Information

Whether you would be applying for the $8,000 tax credit or the $6,500 tax credit, you need to be aware of a few important pieces of information regarding the tax credit that was extended last year.

Important Dates : You have to be in a binding agreement of sale by April 30th, 2010.  And keep in mind, it has to be signed by all parties involved and date stamp. This even means if the property is a bank owned property, that the bank has to have signed off on it also.

The purchase has to be completed/closed by June 30th, 2010.

 

 

 

CPA Shares Little-Known Facts About the 2009 Home Buyer Tax Credit Extension - By Doug Geissler, CPA

 

Doug Geissler has stated that the Internal Revenue Service is literally writing the "refund rules" as they go along. One of the main reasons for this is because of the fraud that has taken place from the previous years tax refunds. Many people were claiming the tax credit who never eevn bought a home or who had filed the tax credit under someone elses name.  So overall, what you could do last year, might have changed for this years tax returns when filing for your tax credit refund.

 

So, what things should you be aware of?

  • You can't file an EZ form or even file your tax return electronically. - Why not?  The government never had anything in place to determine if you did buy a home or not.  There wasn't even any auditing software in place for the IRS to check any of this.
  • The IRS now requiring the HUD-1 or closing statement to be attached to form 5405. So that means this form can't be attached electronically, hence why the tax credit can't be filed electronically now.  Here is the form and the instructions, Form 5405.
  • The refund time frame has been listed now as 16 weeks for a turn-around time. Mr. Geissler has stated that just previously, a client of his was asked for additional information such as a letter from the landlord and the driver's license from the person claiming the tax credit.  The news laws to say that the IRS can request extra documentation.

 

 

Overall, buyers need to be aware of these changes, that there could be delays if expecting a normal refund also, and speak to a qualified tax accountant or CPA. Here are 2 links to the buyers tax credit :

 

 

 

 

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Important Information about the First Time Homebuyers Tax Credit

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Re-Blogged 8 times:

Re-Blogged By Re-Blogged At
  1. Steve Moore 03/19/2010 06:41 AM
  2. Tim Bradford 03/19/2010 09:56 AM
  3. Gabe Sanders 03/19/2010 11:22 PM
  4. Gabrielle Kamahele Rhind 03/20/2010 12:46 AM
  5. Dagny Eason 03/22/2010 09:37 AM
  6. Nellie Lytvinenko 03/28/2010 04:01 AM
  7. Paul S. Henderson, REALTOR®, CRS 04/09/2010 11:09 AM
  8. Hannah Williams 04/10/2010 03:05 AM
Topic:
Lending / Financial
Location:
New Jersey Camden County Cherry Hill
Groups:
Realtors®
Mortgages
All About Mortgages/Mortgage Networking
Realtors Needing the services of the Lending Powers
1st Time Buyers
Tags:
tax credit
8000 tax credit
tax credit for first time homebuyers
first time hombuyers tax credit
2010 tax credit

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Rainmaker
225,558
Tim Bradford
Cleveland, OH
NMLS 250013

Jeff, I have reblogged this.  Buyers do need to take note of the 4/30/10 date.  And as you say, the contract has to be totally complete by that date not in negotiations.   I will also say that Buyers should not use the incentive just to buy before the deadline.   They need to find the right home for their family.  Knowing they could recieve this incentive might allow them to make a stronger offer and not lose out to another bidder on the home.    

Mar 19, 2010 12:32 PM #1
Rainmaker
595,381
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

Oh for crying out loud! This is typical government crap. *sigh* I still say we need to get rid of the whole lot of them and start over! This kind of stupidity if just another reason why.

Mar 19, 2010 01:13 PM #2
Ambassador
1,509,742
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

EXCELLENT INFO!  I know the system was choked up last year for a couple of months.  I am sure they were instituting these changes at that time.  Absolutely unreal!

Mar 22, 2010 03:55 AM #3
Rainmaker
400,528
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

It took some time, but I am working with a few of these First Time Home Buyers. There are 5 trying to get into a contract April 30th.

Mar 22, 2010 04:40 PM #4
Rainmaker
400,528
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

It took some time, but I am working with a few of these First Time Home Buyers. There are 5 trying to get into a contract April 30th.

Mar 22, 2010 04:40 PM #5
Rainmaker
76,436
Bridget Cella
Re/Max Connection - Sewell, NJ
e-Pro, Realtor

Thanks for sharing this important information for buyers.  I am still trying to sell that condo in The Clusters - this no FHA thing is a killer!

Mar 24, 2010 12:42 PM #6
Rainmaker
564,285
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Jeff,

The Tax Credit really has been an example of "write-a-law-and-then-make-it-work.  It pays to stay current to insure  capturing the Credit.

Steve

Mar 27, 2010 05:26 PM #7
Rainer
191,465
Nellie Lytvinenko
Homes by Nellie-Working with Buyers & Sellers - Raleigh, NC
919-210-9992, Raleigh - Cary NC Real Estate

Jeff,

Thanks for the informative post.  I've re-blogged already - I've had several calls in the last week asking for details and you've got it all right here.

Mar 28, 2010 04:05 AM #8
Rainmaker
613,413
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs

Our government at work? Sounds like fraud city. Cannot wait for the Obama Care to kick in. No wonder he needs 16,000 new IRS agents for the red states.lol 

Apr 02, 2010 11:32 AM #9
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727,229
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Very good bullet points to remember. After all the hype there is STILL some confusion or gray area in many consumers minds.


Nice summary brutha !

Apr 03, 2010 06:27 AM #10
Ambassador
1,925,316
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Jeff ...I reblogged ..thanks great info

Apr 10, 2010 03:06 AM #11
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