What the IRS is NOT Telling You

I just read an article detailing how the IRS is making it a little more difficult to receive your First Time Home Buyer Tax Credit or the Move-Up Home Buyer Tax Credit.  According to Karen Deis, a contributing author for Broker Agent Social, the IRS has put stipulations on claiming your credit that are not generally known to the public.  I just wanted you to be aware so that if you have purchased your home after November 6, 2009 there are some things you can't do and some that you must do:

• You cannot file a 1040 EZ form to claim the tax credit
• You cannot file electronically if claiming the tax credit
• There will be a revised Form 5405 to fill out to claim the credit if you purchased after Nov. 6, 2009 but it won't be available on the IRS website for a couple more days (January 8, 2010 is the target date)
• The IRS will need extra time to audit the document to make sure you qualify so they are telling tax advisors to expect an average of a 16-week turnaround.  They may even ask you for additional information that was not previously needed (i.e. letter from a previous landlord, copy of your driver's license, closing statement from the purchase of your home, etc.)

To see a great (and quick) informational video about the revised Tax Credit CLICK HERE.

The main thing to remember is to make sure to get all of your questions and concerns addressed by a licensed tax professional.  I'm here to make sure you are informed before you go into any transaction.