subject: What You Should Know About Housing Tax Credit [print this page] The Federal House Buyer Credit is now over at this point. Currently, there are no further extensions being discussed by Congress. Individuals should make sure that they submit the correct paperwork if they are claiming this credit when filing this year's tax return in 2011. Some people (read below) can still qualify for this credit until September of 2011.
Out of the many articles I have written on this site regarding credit, the most popular one revolves around the one that talked about the big money that was being given away to homeowners. Up to eight thousand dollars was being offered to home buyers at the time. This credit has been extended four times on favorable terms since the Bush term. It has helped many families purchase homes. There has been some cases of fraud, but this credit became one of the best stimulus payments that President Obama has put forth in order to remedy the financial and housing problems within in this country.
It is highly unlikely that credit will be extended to consumers despite the fact that prices of homes are becoming stable again. It seems that the pleas of homeowners that missed the deadline are being ignored. Some outfits such as certain state department employees and military members are still eligible for "Think You Pay Too Much for Your Mortgage"? The Fifteen Hundred Dollar Energy Efficiency Credit is still available. This credit will help consumers lower energy cost savings. In turn, they will be able to save a significant amount of money over the long run.
Claiming home buyer credit has been another challenge for many. The IRS has been pretty slow in processing credit due to the emergence of claims and other stimulus packages. Many received their credit within two to three months. Submitting the correct documentation after making the adjustment on the 2009 or filing your tax returns can shorten the time window. Many are unaware that Form 5405 (an official IRS document) and a tax return are required to claim the credit. A qualified tax specialist will be able to assist you if you do not fully understand the procedure.
- A clear copy of the settlement showing the names and signatures of all parties should be in the statement. Also, you may be required to provide documentation that shows sales figures, date of purchase (prior to April 30, 2010 to qualify for the credit), and property address. This is normally labeled as The Form HUD-1 Settlement Document. A copy of the certificate of occupancy (from the city/county office) displaying the name of the owner, address of the property, and certificate's date.
- Present Home Buyers eligible for the housing tax credit must prove that they resided in their old homes for five consecutive years during the eight year time period ending on the buy date of the new home. This can be accomplished by submitting property tax records, insurance documentation, or mortgage interest statements.
