If you purchased a home that was under contract by April 30, 2010, chances are that you may qualify for the “First-Time Homebuyer Credit”–either as a homeowner that has not owned a home in 3 prior years or as a long-time homeowner. There are a few things to remember in preparing your return. You will not be able to electronically file your return. You will need to attach to the PAPER filed return, a copy of the HUD 1 Closing Statement. If you closed after April 30, but had a binding contract prior to April 30, you will need to attach a copy of the BINDING CONTRACT.
If you previously took the First-Time Homebuyer Credit and have subsequently sold that home or stopped using it as your primary residence, the credit must be repaid. If the credit was from 2008, the credit must be repaid over a period of time. If the credit was for 2009, it must be repaid with the 2010 return.
I will be happy to consult with you if you have any questions regarding this.
