Without the proper documentation your IRS First-time Buyer Tax Credit will be delayed. Below are tips on what you need to gather before you make your claim. It is important that you provide them appropriately for your transaction. Since I am not a tax advisor though, I will not be held liable to the accuracy of the below information, and I strongly encourage you to seek council from a tax professional.
Settlement Statement: Your closing agent will send you a certified copy of your final settlement statement a from called HUD-1.
1. Properly Executed Settle Statement: Generally, a properly executed settlement statement shows all parties’ names and signatures, property address, sales price and date of purchase. However, settlement documents, including the Form HUD-1, can vary from one location to another and may not include the signatures of both the buyer and seller. In areas where signatures are not required on the settlement document, the IRS encourages buyers to sign the settlement statement when they file their tax return — even in cases where the settlement form does not include a signature line.
2. Mobile Homes: Purchasers of mobile homes who are unable to get a settlement statement must attach a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
3. New Construction: For a newly constructed home, where a settlement statement is not available, attach a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.
4. Long-Time Residents: If you are a longtime resident claiming the credit, the IRS recommends that you also attach documentation covering the five-consecutive-year period such as Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner’s insurance records.
For more information about the First-Time Homebuyer Tax Credit and the documentation requirements, visit IRS.gov/recovery.
Ingrid Pierson
(530) 885-1545
ipierson@teamvitek.com
