If you are claiming the $8000 tax credit (or the $6500 tax credit for repeat buyers,) you will have to file on paper. Here’s what the IRS has to say:

Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2009 tax return must file a paper — not electronic — return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (see the instructions for help with the form), and a properly executed copy of a settlement statement used to complete the purchase.

• Purchasers of conventional homes should include a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties’ names, property address, sales price and date of purchase.
• Purchasers of mobile homes who are unable to get a settlement statement should include a copy of the executed retail sales contract showing all parties’ names, property address, purchase price and date of purchase.
• Purchasers of newly constructed homes where a settlement statement is not available should include a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

For the repeat buyer credit (“seller credit”), here’s what they say:

The November 2009 legislation extends the credit to long-time residents of the same main home if they purchase a new main home. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. For long-time residents claiming the credit, the IRS recommends attaching, in addition to the documents described above, any of the following documentation of the five-consecutive-year period:

• Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
• Property tax records or
• Homeowner’s insurance records.

The IRS didn’t originally require the HUD-1, but there were early problems with fraud. If you are my client and need a copy of your HUD-1, contact me.

Be sure to talk to a tax professional if you have any questions or confusions about your home buyer tax credit.

IRS Website.

Related...

• July 15, 2010 -- Tax Credit Closing Deadline Extended for Buyers Who Purchased by April 30
• May 4, 2010 -- The Post-Tax Credit Real Estate Market
• April 12, 2010 -- Will the Tax Credit Get Extended?
• April 6, 2010 -- Remaining Weeks of Homebuyer Tax Credit