Let me first disclose that I am not a tax professional and this should not be considered tax advice.
Glad that’s over!
When a home buyer client of mine e-mailed me recently with confusion about how to claim the home buyer credit in 2010 from the IRS, I knew that he probably wasn’t the only one out there. He was really bummed out to read an old memo from the IRS on the first page on Google that gave the impression he would have to wait until he filed his 2010 taxes to get his rebate check… but know, recent home buyers, that just isn’t the only option. The new memo was released in January.
The home buyer tax credit was intended to be an economic stimulus… not a delayed stimulus plan.
You have two options to claim the tax credit for home buyers:
- File an Amended 2009 Form 1040x along with IRS Form 5405 and proper documentation including a copy of your HUD-1 Settlement Statement.
- Or you can wait until you file your 2010 taxes next year.
Like I discussed in a post in January, I felt that the home buyer tax credit or rebate program was going to be another super motivator for home buyers who were on the fence. As an active Vienna Real Estate Guy, I did see it push some sales forward by a month or two, as those long-time owners living in Vienna VA put their homes on the market ahead of their projected time frame to capture the excitement.
Basically, first timers could get 10% of the sales price or up to $8,000 maximum. And current owners had the option to buy a home to qualify for the long term home buyer tax credit, up to $6,500.
But now that the deadline of April 30, 2010 has passed, there are plenty of people wondering how do I get that money to fix up the kitchen or replace the carpets? Maybe to amended your 2009 using Form 1040x to claim your first time home buyer tax credit is the route for you… consult a tax professional for advice if you have questions.
By the way, how long is it taking people to get those checks?
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- San Antonio First Time Home Buyer or Just Preparing Your Taxes? (rerockstar.com)
- The Amended Federal Income Tax Return and the IRS Form 1040X (personal-tax-planning.suite101.com)