The IRS has released their new form for the first time homebuyer’s tax credit.

The most important new line is here:

If you are claiming the credit on your 2009 (or later) tax return, you must attach a copy of the properly executed settlement statement (or similar documentation) used to complete the purchase (see instructions).

It seems the IRS finally wised up that people were fraudulently stating they had already purchased the home when indeed the purchase had not yet been completed.

Link to the document http://www.irs.gov/pub/irs-pdf/f5405.pdf

Probably so, the House of Representatives voted on the 8th to give service members who served a minimum of 90 days overseas an extension on their ability to claim the $8000 federal tax credit for first time home buyers. TBWS reported the extension of 6 months based on Housing Wire reports while US News reported a 12 month extension.

Here’s the official story from Congressman Mark Schauer:

WASHINGTON, Oct 8 - Today, Congressman Mark Schauer voted to pass two key measures for our American veterans. The Service Members Home Ownership Tax Act (H.R. 3590), which passed with bipartisan support today, will extend the deadline for taking advantage of the first-time homebuyer tax credit under the American Recovery and Reinvestment Act for qualified service members by one year. Today’s House passage of an amendment to the Veterans Health Care Budget Reform and Transparency Act (H.R. 1016) will help advance the legislation towards a Presidential signature. The bill authorizes Congress to approve investments in Department of Veterans Affairs (VA) medical care one year in advance to provide more predictable health care funding for veterans.

If you have questions or comments about the First Time Home Buyer’s Tax Credit, FHA, VA or any other real estate finance questions I will be happy to answer. Telephone me at 678-439-8683

Like it or not it’s coming to an end. There has been much lively debate about whether it should have existed to begin with, whether it should be increased and whether it should be extended. All of those aspects are all over the Internet. This is to remind you there is very little time left – today there are only 52 days left to CLOSE. Say what they may at some broker/lender houses it is taking an average of 35 days to close from the date the fully executed contract is received.

If you have not yet identified a home and made an offer you are going to be very hard pressed to get closed in time to take advantage of the Federal First Time Home Buyer’s Tax Credit. If you have questions don’t wait any longer – pick up the phone and call me at 678-439-8683 or complete the form below now. Not tomorrow, not after you get back from your break … now!

UPDATED UPDATED UPDATED Thursday 5/14/2009 – the entire letter has been rescinded. After thousands of blog posts by excited and misinformed real estate agents HUD has reversed any information which would have been valid as of yesterday (Wednesday 6/13/2009).

Wednesday 5/13/2009

The First Time Home Buyer’s Tax Credit can NOT be used (directly) as a down payment. The Tax Credit itself is being used as neither the down payment nor down payment assistance rather is being used to secure a loan which is either secured by a second lien on the property or a bridge type loan only from HUD approved organizations or lenders.

Georgia has passed a 3 year tax credit of up to $1800 for all tax payers who purchase a home between June 1, 2009 and December 1, 2009 (final day to close is November 30, 2009).

This tax credit may be used in addition to the Federal First Time Home Buyer’s Tax Credit if the buyer is a first time home buyer.

The credit is available only to taxpayers who purchase a single family home during the covered calendar period. The amount of the tax credit is 1.2% of the purchase price of the home or $1800 whichever is less.

Letter from Governor Purdue

Full Text of the Bill as Passed

IRS Form 5405 for First Time Home Buyer’s Tax Credit (Federal)