Maine Real Estate News

The deadline for the Federal Tax credit for first time home buyers and repeat home buyers is approaching. If you want to take advantage of this benefit, you have until April 30, 2010.

The IRS recently clarified which documentation taxpayers need to submit to claim the credit. While the Form 5405 is still required, it is not demanding that all parties signatures be on the HUD-1 settlement statement in situations where buyer and sellers signature is not a common practice at closing. In Maine, however, both parties are required to sign the HUD-1.

Specifically, the IRS clarification states: “In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”

Additionally, for repeat buyers, the IRS is requiring documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.

For more details, visit our online at: Federal Tax Credit.

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