KatyHomeFinder - Caution for Folks Who Utilized Home Buyer Federal Tax Credit

By
Real Estate Agent with Berkshire Hathaway HomeServices Anderson Properties TX Real Est. 567774

It is my understanding that the Internal Revenue Service is seriously increasing its efforts to fight fraud in the home buyer tax credit area. The IRS is in the process of adding staff from other sectors so that they can audit over 200,000 tax returns where the home buyer tax credit was taken. All first time home buyers and folks who already owned a home have to include with their tax return a copy of the HUD1 or Settlement Statement. If you plan to file for your tax credit while filing your 2010 FIT return remember to include a copy of this document along with Form 5405. A copy of the settlement statement should be in the packet or binder the Title Company gave you at closing. Those folks who already owned a home and purchased a new residence need to include copies of proof of owning the same home for five consecutive years out of the last eight years. The credit amount maximium for these folks is $6,500.  Proof of ownership can be establish with including copies of local real estate tax bills, insurance bills, utility bills, etc. as supporting documentation and filed with your return.

The best tax advice I give anyone is to hire a CPA who has a tax practice that mainly represents individual taxpayers. Similar to hiring a Real Estate agent I suggest you interview a potential tax preparer.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cat to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Real Estate General Information
Location:
Texas Harris County Katy
Groups:
More Referrals: Strategies & Tips on Getting More Referrals
Posts to Localism
Prudential Network
Realtors®
The Art Of Marketing You
Tags:
audit
internal revenue service
home buyer federal tax credit

Comments 8 New Comment

Rainmaker
982,329
Robert (Bob) Gilbert
Your Katy TX Real Estate Expert
Berkshire Hathaway HomeServices Anderson Properties

I believe the IRS will find a lot fraud and probably will not get the heavy hitters but will pick on small folks who just did not understand what they really needed to do and they did not hire a competent tax preparor...

December 08, 2010 06:07 PM
Ambassador
1,449,331
Renée Burrows
Las Vegas Real Estate Broker - www.urLVhome.com
Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate

I am wondering what will happen if they sell too early or if they house gets foreclosed on!  I am sure there will be fraudulent issues all over the board with the tax credit!

Las Vegas Real Estate

December 12, 2010 01:22 PM
Rainmaker
982,329
Robert (Bob) Gilbert
Your Katy TX Real Estate Expert
Berkshire Hathaway HomeServices Anderson Properties

If they sell too early the IRS will recoup the tax credit. Off the top of my head I believe a person/family who claimed the tax credit have to live in their home for 3 years or face the IRS taking it away. I am unsure about foreclosure but I will see if I can find someting on the IRS web site...

December 12, 2010 07:03 PM
Ambassador
1,664,328
Dale Baker
New Hampshire Relocation and Views Info Blog
Baker Energy Audits and Commercial Properties Inspections

Howdy and afternoon Bob

Bob my friend, this sure was more outstanding info you got out to help folks be in the know!


Have a good one
Dale in New Hampshire

September 07, 2013 12:15 PM
Rainmaker
629,383
Dale Baker
Home and Commercial Properties Inspections Vermont
Baker Residential and Commercial Properties Inspections

Will howdy to ya Bob my friend, you sure post such outstanding local blog posts for folks to enjoy visiting your outstanding blog full of helpful info. Folks sure do always get to find mighty enjoyable reading when they visit.

January 24, 2014 08:30 AM
Rainmaker
982,329

Robert (Bob) Gilbert

Your Katy TX Real Estate Expert
Ask me about Katy Real Estate and Let's get Started!
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the truck to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

INFORMATION OR EVENTS OCCURRING IN THE KATY, TEXAS , CYPRESS , TEXAS AREA , SUGAR LAND AREAS AND FAR WESTERN LOCATIONS OF HOUSTON, TEXAS.