First Time Home Buyer and Efile

[Dave T]

Have a client that qualifies for first time homebuyer credit and it is my understanding that a copy of the closing statement needs to be submitted.

Can the file be efiled and the closing statement be sent with the 8453 or does the return need to be paper filed?

Thanks

- Dave T

[Gail in Virginia]

Return must be paper filed. In addition to the HUD statement, I recommend sending paperwork showing a utility bill sent to the new residence and a copy of the driver's license with the new address; this helps demonstrate that the taxpayer lives there and this is his principal residence. Taxpayer should also be prepared to wait.

[Kea]

It's my understanding that it all has to be paper filed.

I have an add-on question. I have a client that qualifies for the extension due to Qualified Official Extended Duty. Do I have to submit anything extra such as deployment orders? What, if anything, does IRS required to prove it?

Thanks

[Pacun]

If he comes back from extended duty... it might be a good idea to request the 8K when he gets back. Remember that he has until April 15, 2014 to claim the credit by amending 2010.

[Kea]

He returned in December 2010 & bought house at that time. (Wife did the house hunting & sent him pictures.) Closing was within a few days of his return to US. Had been in Iraq since November 2009 (3rd deployment). 2010 has been filed. I'll do the FTHBC as amendment, but just wanted to verify what needs to be send besides the standard HUD-1, and utility bills (and whatever else they want these days as proof).

What do they need to prove they were eligible in 2010 due to military deployment?

Thanks

[Pacun]

Attach a nice letter explaining that he qualifies for the 8K to the 1040X and HUD-1 and contract (if applicable). Include deployment letters and any documentation that proves he was deployed and proof that he is living in the house.

[Kea]

Thanks.