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The Minnesota Home Ownership Center published the following article:
2009 Tax Returns and the Homebuyer Credit
Posted: 26 Jan 2010 08:02 AM PST
Back in November, the Center highlighted information about the ”Worker, Homeownership and Business Assistance Act of 2009″, that extended and expanded the first-time homebuyer credit.
The law created an $8,000 tax credit available to first time buyers who are purchasing their primary residence, and a potential $6,500 tax credit for some existing homeowners who purchase another principal residence.
The IRS has issued some additional guidance regarding filing for the tax credit when homebuyers submit their 2009 tax return:
“Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2009 tax return must file a paper — not electronic — return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit” (Highlight ours)
For additional information on the documentation required when submitting a 2009 tax return, visit the IRS website.
Remember, in order to qualify for the home buyer tax credit in 2010 you must have a property under contract by April 30, 2010 and close by June 30, 2010. If you are considering selling your property, you should get it on the market no later than February in order to allow for marketing time, offer negotiations, and closing.
