The Internal Revenue Service has released new documentation that home buyers of real estate in the Capital Region of New York and Central New York need to use in order to claim the first time home buyer tax credit. The processing of these tax returns is slated to begin in mid-February.
Upstate New York real estate home buyers planning to take advantage of the home buyer tax credit should pay careful attention to the details together with the links to forms found below.
An item of note is those claiming the first time homebuyer tax credit cannot file electronically - they must file paper returns.
Following is additional information from the IRS:
The new form and instructions follow major changes in November to the home buyer credit by the Worker, Home ownership, and Business Assistance Act of 2009. The new law extended the credit to a broader range of home purchasers and added new documentation requirements to deter fraud and ensure taxpayers properly claim the credit.
With the release of Form 5405, First-Time Home buyer Credit and Repayment of the Credit, and the related instructions, eligible home buyers can now start to file their 2009 tax returns. Taxpayers claiming the home buyer credit must file a paper tax return because of the added documentation requirements.