tax time-any accountants here?

[wtnhunt]

Building this house has made for complicating our taxes a bit this year, looking at all the criteria it looks like we qualify for the "long time resident" tax credit but not likely we will be in the new house(take occupancy) before the April 15th deadline for getting our returns in, should not be any problem taking occupancy by the June 30 deadline for the credit though. Just talked with the IRS and they were rather helpful, she did however not make any suggestions on what she thought would be best, but did tell me I can go ahead and file now since we are due a refund and later amend the return to show occupancy requirements for the credit.

Would it be better to submit an amended return or would it be better to recapture the credit on 2010 taxes or wait and file an extension? Since we will be getting a refund this year, thinking probably best to go ahead and file now, so my question for any accountants here is that a good idea or would it be better to wait and file all at once?

[backwoods07]

I would pass this question on to my sister who is an accountant, but she actually pays other accountants to do her taxes soo I don't think she'd be of any help...Sorry!

[BuckNrut]

File the ammended return and get the credit you are owed THIS year instead of letting the government collect intrest for a year on your money.

[Newarcher]

Building this house has made for complicating our taxes a bit this year, looking at all the criteria it looks like we qualify for the "long time resident" tax credit but not likely we will be in the new house(take occupancy) before the April 15th deadline for getting our returns in, should not be any problem taking occupancy by the June 30 deadline for the credit though. Just talked with the IRS and they were rather helpful, she did however not make any suggestions on what she thought would be best, but did tell me I can go ahead and file now since we are due a refund and later amend the return to show occupancy requirements for the credit.

Would it be better to submit an amended return or would it be better to recapture the credit on 2010 taxes or wait and file an extension? Since we will be getting a refund this year, thinking probably best to go ahead and file now, so my question for any accountants here is that a good idea or would it be better to wait and file all at once?

Make SURE that you actually qualify, I have some clients who thought they would and didn't.

To qualify, you must have a contract written (which I assume you do) by April 30th and must close within 60 days. That's step one.

The credit is up to $6,500 based on the purchase price of the new home and doesn't require the new home cost more than the old.

However, what got my other clients was the requirement that you must have lived in the same principal residence (your old home) for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased. My clients didn't own the old home more than five years.

As for filing, you can claim the credit this year or next (2010 tax year). Since you purchased the new home after Nov 6 2009, you will have to use the new form 5405 from the IRS Website and if you claim the credit in 2009, you will have to paper file....you cannot e-file.

2009 tax returns must include one of the following documents in addition to form 5405 in order to receive the credit:

• A copy of the settlement statement showing all parties' names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
  
• For mobile home purchasers 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.
  

There are some income limits and home price limits so but you can look them up.

As for how to file, you could either extend the return and file as soon as you close and get the required documentation to go with form 5405 (you don't have to wait until October to file after an extension). This would be my preferred route to take.

You could also file now and amend the return once you close but the amended return with the credit would LIKELY receive extra scrutiny--more than an original return filed at the same time.

Lastly, you could claim the credit in 2010. Of course, filing in 2010 takes a lot of faith on your part that the government will be around to pay it. With obama spending the tax revenue of the next 20 generations, I have my doubts. I would personally NOT claim the credit in 2010 unless there is a substantial income increase that you will need to offset. That's my opinion.

The credit is refundable so no worries about not owing enough taxes to offset the credit.

This is free advise...use it at your own risk. You should always consult your tax advisor before using this information.

New

[wtnhunt]

Make SURE that you actually qualify, I have some clients who thought they would and didn't.

To qualify, you must have a contract written (which I assume you do) by April 30th and must close within 60 days. That's step one.

The credit is up to $6,500 based on the purchase price of the new home and doesn't require the new home cost more than the old.

However, what got my other clients was the requirement that you must have lived in the same principal residence (your old home) for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased. My clients didn't own the old home more than five years.

As for filing, you can claim the credit this year or next (2010 tax year). Since you purchased the new home after Nov 6 2009, you will have to use the new form 5405 from the IRS Website and if you claim the credit in 2009, you will have to paper file....you cannot e-file.

2009 tax returns must include one of the following documents in addition to form 5405 in order to receive the credit:

• A copy of the settlement statement showing all parties' names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
  
• For mobile home purchasers 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.
  

There are some income limits and home price limits so but you can look them up.

As for how to file, you could either extend the return and file as soon as you close and get the required documentation to go with form 5405 (you don't have to wait until October to file after an extension). This would be my preferred route to take.

You could also file now and amend the return once you close but the amended return with the credit would LIKELY receive extra scrutiny--more than an original return filed at the same time.

Lastly, you could claim the credit in 2010. Of course, filing in 2010 takes a lot of faith on your part that the government will be around to pay it. With obama spending the tax revenue of the next 20 generations, I have my doubts. I would personally NOT claim the credit in 2010 unless there is a substantial income increase that you will need to offset. That's my opinion.

The credit is refundable so no worries about not owing enough taxes to offset the credit.

This is free advise...use it at your own risk. You should always consult your tax advisor before using this information.

New

Thanks New.

We have contracts between the home material supplier and the contractor drying in the home and those were dated for July of 2009. My understanding is that we qualify so long as we are in by the June 30, 2010 deadline. We closed on our loan with the bank on a one time closing loan against our property back in July, home construction also started in July.

The woman I spoke with at the IRS said that was fine, and said that the sale date would be the date of occupancy in our situation. The certificate of occupancy will come from the building inspectors office upon the finalization of our electrical.

Think since we have a refund coming I am going to go ahead and file this week by e file and then we can later decide whether to ammend the return when we get the house done or put it on next years taxes.