How to Claim the Home Buyer Tax Credit

San Mateo home buyers who purchased in 2009 are starting to think about their taxes so they can (hopefully) get some money back from the IRS with the home buyer tax credit. Several clients have asked how to claim the home buyer tax credit…here are some tips.

e-File Not Allowed

The IRS is not allowing tax payers claiming the home buyer tax credit to e-file and are requiring additional documentation to prevent more fraudulent claims from those who are not eligible to receive the home buyer tax credit.

Additional Documentation Required for All Buyers

All home buyers (first time and trade up) must attach Form 5405 with a copy of the HUD-1 Settlement Statement with all of your usual required IRS tax forms. (You received the HUD-1 from the Title Company when you signed the loan documents at closing.)

More Documentation Required for Trade Up Buyers

Remember, to claim the $6,500 trade up home buyer tax credit, San Mateo home owners must have lived in their primary residences for at least 5 consecutive of the past 8 years and be purchasing a new primary residence.

Once again, the IRS is going to want proof you meet the requirements of the trade up home buyer tax credit. To prove you’ve been in your home for 5 consecutive years, you will need to provide one of the following covering 5 consecutive years:

• Form 1098, Mortgage Interest Statement or substitute
  
• Property tax records
  
• Homeowner’s insurance records
  

More Information About Filing the Tax Credit?

Remember, I am a San Mateo Mortgage Advisor helping San Mateo home buyers with their mortgage needs, NOT an income tax specialist. If you have more specific questions, contact your Tax Advisor or visit the IRS webpage.

If you need a recommendation for a tax advisor, send me an email at info@SanMateoMortgageBlog.com and I can recommend someone to you.

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Raymond Stoklosa, Chela Stoklosa and Rebecca Williamson are Realtors with The RayChel Realty Group specializing in Santa Clara and San Mateo Real Estate.

Chris Williamson is Mortgage Advisor with Mortgage California specializing in San Mateo Mortgages.

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