Getting the Credit
Kathy Riggs January 30th, 2010
We are one month into 2010 and the end of January means preparing to deal with the IRS.
I know the IRS not everyone’s favorite subject, but you should now have your W-2’s, 1099 or whatever you need to prepare your 2009 income taxes.
And, if you, like many people in the country today are spending this weekend camped indoors due to a winter storm, take advantage of the time to get this task done. (Who wants to spend a warm weekend that might be in the near future on these forms and figures?)
My purpose here is to remind first-time homebuyers who purchased homes in 2009 to gather all the information they need to claim the credit. Hey, when that refund arrives in the mail, it’s money you can use for home improvement or put away for the day you need to do something major, such as replace your roof.
Regardless of who prepares your taxes, you know about the 1040. To claim the tax credit, you will need to also use the 5405. Both forms can be downloaded from the IRS website, www.irs.gov. You should download the instructions to complete the 5405. With a calculator or some basic math skills, you will be able to determine your exact credit amount. Even if you use a tax professional, you will have a better understanding if you read through the instructions.
In addition to the IRS forms you will need a copy of your HUD-1 settlement statement. Remember signing six or seven copies at closing? This document should always be kept in your files but if you can’t locate it, call your attorney or your REALTOR.
And remember, it you did not buy a home in 2009, the tax credit has been extended. Read some of my previous posts for details.
on the lighter side…
Real Estate Lingo Definitions: “House has charm and character” Translation: House is old and there will not be enough electrical outlets in one room for a computer, TV and DVD.
SHAMELESS PLUGS
I’m still looking for farmland and if you have any you are willing to sell, I have some interested buyers. Call me at 252-939-2432 or email me at kriggs@kathyriggs.com for more information
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