Homeowners credit

[JohnH]

Do you have the phone number for the local HRB office?
If I were you, I'd look it up and hand it to the client, along with their paperwork.

[MLINDER42]

Homeowners

I disagree some of us would like to grow our practice and it is threw trying to help clients that we do this.I would do all the research talk to the client and do what is legal,Sending them down the street does not accomplish that.

[Gene V]

AJ, I cant find those examples you are talking about.
Incidentally, I just received a fax copy of the HUD-1 Statement. The parents names are also on the statement. It reads; John and Jane Doe and Joan Doe.
It is beginning to become a nightmare.

http://www.irs.gov/newsroom/article/0,,id=206294,00.html

S2. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much?
A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A's primary residence

[JohnH]

Yes, I'm sympathetic to your point of view. I often spend considerable time researching tax issues for new clients in the expectation of building a long-term relationship. However, the potential risks of getting a wrong result on the FTHB credit are so out of proportion to the rewards that I refuse to do one. The only exception might be a long-time client (or their child) or one in which the situation is a slam-dunk.

My position isn't for everyone, but I'm sending any return claiming a gray area FTHB credit to the companies with the deep pockets.

This is to protect two people (in order of importance):
1) ME
2) the client.

[Gretel]

http://www.irs.gov/newsroom/article/...206294,00.html

S2. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much?
A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A's primary residence

I am not sure they are just talking about the mortgage here and not also about the closing statement. Only the closing statement should be relevant (I am uncertain this IRS example addresses the issue), how property is financed should have no bearing.

[Gretel]

My position isn't for everyone, but I'm sending any return claiming a gray area FTHB credit to the companies with the deep pockets.

Your position is respected and I hope this was the last time you suggested sending a client somewhere else (and thereby respect my position and the position of other posters as well).

[JohnH]

I can't promise this will be the last time I'll make that suggestion. I only make it when I sincerely believe that's what I would do in a particular situation but I will say so when I think it's appropriate. However, I try to make it clear that it's a personal preference - I'm not implying that everyone else should do the same. It's a suggestion, not a demand.

And just for clarity, I DO respect the position of others who would not send the client somewhere else. After all, if everyone followed my practice in this type of situation, there would be no one to prepare the client's return. I've gotta have somewhere to send them.