The IRS clarifies needed documentation to claim "Tax Credit"

The IRS has released a "clarification" of the documentation needed when you submit for the "First Time Buyers" or "Move Up" tax credit. The 5405 form is still needed but the requirement that signatures of ALL parties be on the HUD-1 even in areas where BOTH buyer and seller signatures are not needed has been dropped. The verbatim statement: "In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. ... The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return."
As for "Move Up" buyers the IRS is requiring documentation that the owners have lived in the previous home for 5 of the last 8 years. Accepted proof includes interest statements, tax records, or insurance records.

If you have any question or need any clarification on how this affects us here in The Boise Valley, please feel free to contact me.