Long Time Homebuyer Credit

[JohnH]

Client walks in with his 2010 info and also hands me a closing statement for a home purchased April 30, 2010. Says he thinks he's entitled to "some sort of tax break" on this. Well, yes, how about $6,500?

So we decided to file the 2010 return "as is" since he's getting a nice refund anyhow. Meanwhile he needs to fish out mortgage interest statements, etc for the previous 5 years. The only question is whether to amend the 2009 or 2010 return once he gets his other documentation to me. There are no income limits on either year. I'm thinking it's better to amend 2009 because he will get more interest on the refund. Is there any reason to amend 2010 rather than 2009 that I'm not thinking of?

[Koss]

2009 or 2010?

Any return containing the Homebuyer Credit, whether original or amended, whether for 2009 or 2010, has a relatively high probability of selection for an audit, when compared with other returns that do not contain the Homebuyer Credit. In many cases, it is a correspondence audit that is limited in scope to the Homebuyer Credit, but you never know what other can of worms it might open.

So with that being said...

Is there something kinky on your client's 2009 original tax return that he reaaaally doesn't want the IRS to take another look at?

Is there any reason to amend 2010 rather than 2009 that I'm not thinking of?

You asked.

BMK

[JohnH]

OOOH, good point. Thanks for the sugestion. But in looking it over, this guy's return is pretty clean in both years. In my opinion, about the only think kinky about either return is the preparer's name...