This is the third of 7 tips on tax preparation from Tony. Check back each Tuesday to read them all.
Tip Number Three: First-Time Homebuyer Tax Credit Tips • Homebuyers must attach Form HUD-1 or other properly executed settlement statements that show all parties’ names, signatures, property address, sales price and purchase date. • Settlement documents vary depending on location and may not include both buyer and seller signatures – thus when filing tax return the IRS encourages buyers to sign settlement statements, even that have no signature line. • Mobile homes buyers without settlement statements must attach a copy of retail sales contracts showing all parties’ names, signatures, property address, purchase price and date. • For newly constructed homes, where settlement statements aren’t available, attach a copy of the certificate of occupancy showing owner’s name, property address and certificate date. • For long-time residents claiming the credit, the IRS recommends that you include documentation, i.e., Form 1098, for the five-consecutive-year period, Mortgage Interest Statement or substitute mortgage interest statements and property tax records or homeowner’s insurance records.
Tony Navarro, UCLA, B.A, Economics, 1990: Investment Consultant since 1992; Tax Preparation since 1996 tax year; IRS Audit Representation; IRS-designated Enrolled Agent; Investment Advisor LPL; Notary Public; Bookkeeping Services. 12803 Venice Boulevard • Mar Vista, CA 90066 (310) 398-3231 • tony@taxplusla.com http://www.taxplusla.com
Tags: income tax prep, IRS
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