January 29, 2010
The IRS has been dealing with bogus claims for the $8,000 first-time buyer's credit and the $6,500 credit for existing home buyer's credit.
So, to get the credit, now the IRS is requiring more documentation. A signed copy of the settlement statement must be attached to the tax return. Also, for buyer's claiming the $6,500 credit a copy of Form 1098 or records of property taxes paid to document that they have owned a home for five consecutive years out of the past eight.
Because of the required attachments, the tax return cannot be e-filed. With the extra processing required for the paper returns and document verification, refunds for these credits will probably not begin to occur until late March.
Always remember: if you need help navigating the traffic jams of the tax highway, our tax department is here to help you find the way.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).