Prepare For 1st moment Homebuyer Tax Rebate and Your IRS Audit

October 20th, 2009 | Category: Buying A Home

If you bought a home that year using the 1st instance Home Buyer tax credit for $8,000, be advised that due to some very questionable claims made by others before you, you could be in for a tax audit.

I found this great article in my reading and thought that the subject bears repeating. The Wall Street Journal reports that there are by 100,000 cases that have been filed that are considered "suspect" by the IRS. We all know what happens to suspicious minds.

If you are buying a home that year and are entitled to the refund, thank you for participating in keeping the money train moving. Just be aware that you have to live in the house for three years or parts of the incentive will have to be repaid.

You must additionally close your escrow or settlement

no later than November 30th of that year. Lenders are starting to get very busy right now, so be certain that you stay close to your Realtor and loan officer to be certain all is being done to move you forward.

The IRS has a nice by view of the program here.

Here is the structure that you need to file after closing. I would propose that you read the entire mold and be aware that you can file for the tax rebate immediately after closing on your 1st home. (click here for on line tax rebate )

A word to the wise: When you file your tax returns for 2009, be advised that you might be audited for what is know as "Quality Control" in the mortgage business.

Orginal post by Mary Supinger

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