Home Tax Credit Going Away

The Home Buyer Credit is now gone and there are no more plans to keep it going. However, if you have the correct documents you may be able to claim this credit when doing your tax returns next year. Some people may still be able to receive this credit until September 2011.

One of the more talked about topics on this site is the home tax credit due the involvement of money, up to $8,000 for people who buy homes. This credit has been lengthened four times continuing to make good terms and goes all the way back to when Bush was president. It has helped thousands of people purchase homes. Some fraudulent activity has occurred but regardless this credit has been one of the best stimulus plans the Obama administration has put into place to address the housing and economic problems.

With home prices coming down in many markets is it probably unlikely the credit will be offered into 2011 but many home owners are begging who just barely missed the deadline(April 30th qualify, Sept 30, able to claim). Other people such as some people in the Armed Forces and some state  workers can still qualify for a different credit but for the majority of home purchasers the credit is gone forever. A credit that can still be had is the house efficiency credit in the amount of $1500 designed to lower the costs of energy in the medium and long term.

Another difficulty for the home buyer credit has been being able to claim it. There are multitude of claims and other credits the IRS has been sluggish to process them all. Most people have to wait around 3 months to receive their credit. You can make the process faster by making sure you have the right paperwork when you file your taxes. Form 5405 is the correct form to have with your tax return to be able to get the credit and you must have at minimum one of the following documents. If you are not sure, include them all or ask a professional to be sure.

-A copy of the settlement showing the names of all involved, where the property is located, the price paid for it, and when it was bought.(prior to April 30 2010 to get the credit). This is proper from HUD-1 Statement. For a house just built where you might not be able to get that statement you need a replica of the certificate of occupancy(normally available from the city office) that details the name of the owner, address and time the certificate was signed.

-Current home buyers who can get this credit must demonstrate that they lived in their previous home for at least five straight years during the eight year period that ends on the purchase date of a new house. Evidence of this would be mortgage interest paperwork and property tax or possibly home insurance records.