another 1st time home buyer

[fliszt]

Sorry for this question, but I can not find the answer in .gov

Client bought house today, August 3, 2009. Bank told him to fill out the 1st time home buyer form and mail it in. I can't find where the form is accepted now (2009). I only can find where he can claim it against his 2008 return and then that is basically an interest free loan. He just wants the money w/no repayment. Doesn't that go on his upcoming 2009 return? Thanks for the help in answering my xxxx question.

Larry

[Bees Knees]

From TTB updates:

Election to treat a 2009 purchase on the 2008 tax return. Page 11-4, TheTaxBook™ 1040 edition. Under the old rules, if a taxpayer purchased a home in the eligible 2009 period, the taxpayer could elect to treat it as a 2008 purchase and claim the credit on the 2008 return. The election thus established 2008 as the year of purchase for the recapture period.

Under the new rules, a home purchased in 2009 is still treated as a 2009 purchase even if the election is made to claim the credit on the 2008 return. Form 5405 has been revised to accommodate this new rule. If a home is purchased in the eligible 2009 period, the taxpayer can elect to claim the credit on the 2008 return by checking the box on line C, Part I, of Form 5405. Making the election to claim the credit on the 2008 return does not change the fact that the purchase is a 2009 purchase, subject to the new rules for homes purchased in 2009. Thus, the taxpayer can claim the higher $8,000 credit on the 2008 return, and not be subject to the recapture rules assuming the home is not sold within three years of the date of purchase. The election to report a 2009 purchase on the 2008 tax return can be made by filing an amended 2008 return.

[fliszt]

Thanks so much Bees.

I just posted a reply to ST's post. I'll go back and amend the reply.

[AZ-Tax]

1st time home Purchased in Dec & closed in Dec 2009

Taxpayer can amended their 2008 tax return for the credit?

[David1980]

Yes. And potentially get interest on the amount of the refund (from time of purchase of home I think?) Which does give one extra benefit for filing it on the amended 2008 instead of 2009 return (well, unless they also pay interest on a 2009 retun but I doubt it.)

[PIGLEE]

They just had a news story on the FTHBC. Don't always believe what I hear on the news, BUT this sounds reasonable. They said if you want your FTHC fast, at this point in time, don't do an amendment, because IRS are way backed up on processing the amendments. Instead wait a few weeks and file your 2009 return, which will be processed sooner. Which makes sence to me. Have not done any figuring, or research, Don't have any to do. But I would sure give clients an option. At this point I think they would have a better chance to do a 2009 return.

[MLINDER42]

fthb

The only problem is that as of now you can not e-file 2009 returns with a 5405.NAEA is talking to IRS trying to correct that situation.If it stands a lot of people will file without 5405 and then amend which would put us in the same place we are now.IRS backed up with amended returns.

[David1980]

I doubt NAEA is going to get it changed. They're making you paper file the 2009 ones because they want you to actually attach paperwork with the tax return, and if they allowed it to be efiled (with papers on 8453) there's probably a ton of people that would never send in the 8453.

Of course, they could simply process the tax return electronically minus the 5405 and wait on the papers for the $8000 credit. Instead of causing the whole return to be delayed (or having the taxpayer file an original without credit + amended with credit.)