IRS Tax Form 5405 Instructions 2009 2010 Revised First Time Homebuyer Tax Credit and Repayment of the Credit

Did you buy a home in 2009? If yes, then you would qualify for a First Time Homebuyer Credit for 2009 2010. US Goverment in November 2009 expanded and extended the First Time Homebuyer Credit for 2009 2010 and also added documentation requirements for claiming the credit. Due to increased compliance checks by the IRS, failure to submit documentation will slow down the issuance of any applicable refund. You better hurry up with your IRS E-file.

Taxpayers who like to claim the First Time Homebuyer Tax 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 (see the Form 5405 instructions help with the form), with one of the following:

• For purchasers of conventional homes, a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties' names and signatures, property address, sales price and date of purchase.
• For purchasers of mobile homes who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties' names and signatures, property address, purchase price and date of purchase.
• For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

IRS recommends attaching the following documents to Form 5405-First Time Homebuyer Tax Credit and Repayment of the Credit. The documents should be valid for last 5 years.

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

If you are filing Form 5405, Do not use IRS E-file instead use the Paper Form of Form 1040X