Information regarding Federal Income Tax Form 5405, used to claim the $8000 First-Time Home-Buyer Credit:
Changes have been made to the first-time home-buyer credit by the Worker, Homeownership, and Business Assistance Act of 2009, signed into law by President Obama on November 6, 2009.
As a result, the 2008 Tax Form 5405 can be used only for homes purchased before November 7, 2009, for which an election is made to claim the credit for 2008.
The IRS will soon issue a November 2009 revision of Form 5405 for claiming the credit for homes purchased after November 6, 2009.
Home-Buyers closing on a home between November 7 and December 31, 2009 can still go back and amend the 2008 return. Or they can elect to simply claim the refund on their regular Federal Income Tax Form 1040 for 2009.
Home-Buyers closing on a home after the first of the year will still be able to elect to claim the credit for tax year 2009 or wait and claim it when they file for tax year 2010.
The new Form 5405 will require attachment of the HUD-l (closing statement) proving the sale was actually completed.
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Jim Hale
Principal Broker
Graduate, REALTOR Institute e-PRO
actionagents.net
1715 Linnea Avenue
Eugene, OR 97401-1962
Office: 541-484-0219
Direct: 541-543-9991
Fax: 541-485-8068
www.actionagents.net jim@actionagents.net
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