What Documentation Do I Need To Claim The First-Time Homebuyer Tax Credit

If you’re planning on claiming the First-Time Homebuyer Tax Credit on your 2009 tax return you’re going to have to provide some extra documentation when filing.

Not sure what documents you’re required to include?  The IRS has provided some guidance on the topic.

Required Documentation For The Homebuyer Tax Credit

The IRS includes these tips on their site as to what you’ll need to include in order to claim the tax credit.

Settlement Statement: Purchasers of conventional homes must attach a copy of Form HUD-1 or other properly executed Settlement Statement.

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.

Retail Sales Contract: 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.

Certificate of Occupancy: 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.

Long-Time Residents (Claiming the $6500 tax credit): If you are a long-time 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, or check out our posts on the topic.

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