The IRS will be releasing a new version of Form 5405, the First-Time Homebuyer Credit Form, for homebuyers looking to claim the extended housing tax credit. Homebuyers eligible for the tax credit must use this new version if they:

  • purchased their homes on or after November 7, 2009; or
  • will claim the housing tax credit on their 2009 tax returns, regardless of when the property was purchased.

The new form is due to be published later this December. The old form (currently the only one available on the IRS website) will not be accepted for claiming the tax credit under the extended rules. Owners claiming this tax credit 0n their 2009 tax returns must file on paper.

first tuesday take: Brokers, take heed. Make sure you remind your buyers eligible for the extended housing tax credit of the change to the First-Time Homebuyer Credit form. Even better, consider putting together a friendly, informal marketing flyer reminding potential buyers of eligibility requirements and steps to claim the tax credit. It will prove an easy and helpful service to your buyer and help you stay competitive while the market recovers.

For more information on the extended First-Time Homebuyer Tax Credit, see the December 2009 Legislative Watch.

Re: “Wait to claim new tax credit, IRS says” from the San Francisco Chronicle