I have a client who just closed on a new home!

[Tax Prep by Deb]

I have a client who just closed escrow on their very first home. They are eagerly waiting to get their $8,000 credit and I have just taken a look at the new form and the new instructions as to what we attach to the form. It states: Attach a copy of your settlement statement showing all names and signatures, the property address, the contract sales price, and the date of purchase. In most cases, your settlement statement is your properly executed Form HUD-1, Settlement Statement.

I have seen many of the HUD-1 Settlement Statements since I've been doing taxes, but never have I seen one that is signed by all parties. Have any of you? If not what are you doing about the signature requirement?

Any thoughts would be appreciated!

Deb!

[Pacun]

I don't have an answer but this is an excellent question. Since your client just closed the deal, ask him/her to go back to the realtor to have a copy of the HUD-1 that everybody signed. It wouldn't hurt to have it anyways.

[windmill]

Also consider the title company...they need everything signed.

[Tax Prep by Deb]

Thanks for your imput. I did ask the client to go back and get signed copies, however I can hear the reply a mile away. The Settlement papers you got is all that is needed! I've also instructed my client to bring me their packet from title company as I know there is something in there that will have both signatures, at least I hope. When my parents have sold things we usually only received copies of the documents we signed, I don't really remember seeing anything with the other party signed, but then again it's been a long time ago.

Again thanks for your imput!

Deb!

[BulldogTom]

Along the same lines - when documenting a long time homebuyer credit, what do you send in. My M-I-L (86 years old) sold her home of 60 years last year. She has purchased a smaller home. She never had a mortgage and did not carry insurance on the home. When she moved out of the home, all her documents were put into storage, so she does not have the property tax bills.

I was thinking of sending in copies of her last 5 tax returns, but that is not a listed document on the IRS website.

Is going to the county for copies of the last 8 property tax bills her only option?

Tom

Lodi, CA

[TAXBILLY]

5 years not 8.

taxbilly

[grandmabee]

Thanks for your imput. I did ask the client to go back and get signed copies, however I can hear the reply a mile away. The Settlement papers you got is all that is needed! I've also instructed my client to bring me their packet from title company as I know there is something in there that will have both signatures, at least I hope. When my parents have sold things we usually only received copies of the documents we signed, I don't really remember seeing anything with the other party signed, but then again it's been a long time ago.

Again thanks for your imput!

Deb!

I am going thru the same thing. I talked to the title company and they said they could not give my client anything with the sellers information on it because of privacy laws. I said there must be some doc, contact or something that shows they agreed to sell/buy property with both signatures. She said the earnest agreement but no they could not give that out the both signatures.