The IRS Audit Blog

Posts Tagged ‘home’

Question: First-Time Homebuyers credit when purchasing from a sibling?

I am buying a home from my sister and am wondering if I still qualify for the credit.

The IRS form 5405 and other information on the IRS site always seems to exclude sibling from the examples of related persons, e.g. “Your spouse, ancestors (parents, grandparents,etc.), or lineal descendants (children, grandchildren, etc.).” which is why I am wondering if I can still take advantage of the credit.

Thanks.

Answer: Everything that I’ve read put out by the IRS does not include sibling in the category of “close relative” for purposes of this tax credit, so you do have a point. I haven’t had any clients that were planning to purchase property from their siblings, so I haven’t done any in-depth research as to whether this is allowable, but the IRS published information seems to suggest that it is.

Get a bigger tax return this year with these tips

If you want to save money when filing your 2010 taxes, then read this column.It’s easy to get overwhelmed by all the calculations, tax deductions and credits when filling out your taxes. Use these commonly missed deductions and credits to save this season.

Selling your Home with Remax Capital City

Question: Tax fraud case- Do u think he will face jail time?

A federal grand jury has indicted a Calhoun, Ga. tax preparer on charges of filing falsified tax returns to the Internal Revenue Service and obtaining $117,000 in improper tax refunds.
An Oct. 22 indictment accuses 31-year-old Wilson Ngure of falsifying income levels, withholdings and deducations while electronically filing returns for more than 30 taxpayers.
U.S. Attorney David Nahmias says taxpayers weren’t aware of false items on their returns. The indictment accuses Ngure of pocketing the improper tax refunds.
“Tax return preparers who knowingly prepare false returns for the purpose of stealing tax refunds will face federal prosecution and federal prison,” said Nahmias. “This defendant will now be confronted with the evidence that he engaged in an extensive tax fraud for the purpose of enriching himself and depleting the U.S. Treasury.”
Article from

http://www.newschannel9.com/news/tax_972827___article.html/returns_filing.html?wap=1

Answer: Yes! And, he will also have to repay any amount they can prove.

Hope this helps.

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ATLANTA BANKRUPTCY LAW FIRM: Bankruptcy And Your Tax Refund

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Proprietary Safe Harbor IRA allows occupancy and enjoyment of IRA property today

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Question: My ex- wife and I were going to file taxes together for 06. She then filed alone and just told me.?

She just gave back my w2 form yesterday and said she had already filed and claimed all of the deductions we had. She is a real estate agent and does not pay her taxes when they are due, I on the other hand pay taxes on every check and on top of that have paid her $65,000 in support this year. She says I now owe $14,000 to the irs. I know she lied on her return not to mention she hasn’t left me much time to file on my own. what recourse do I have. Can I request an audit?

Answer: If you were separated for more than six months, then you can file as single. If there are children involved and in your custody, head of household. Oh yes, this one is fun. First off, she can only get the deductions that apply to her and her income. Is that support you paid her called alimony? If so, you are entitled to deduct it from your income and she WILL have to report it as income on hers. Ok, and for the best part. Did she file your taxes for you? How generous. Unless she did, then how would she know how much you owe? So, I do not know all of the info, but if she filed your return, does she have power of attorney to sign for you? Unless she does and did, then what she did was illegal. On your 1040 (and 8453 if efiling) it needs to be your signature or have a Power of Attorney attached to it. I would actually go ahead and file a 4868 for an extension if you need the extra time. Unfortunately, interest will start accruing, but at least there would be no penalties. You will need to report an estimated amount due, but if you use the figure she gave you, that is likely to change. I can almost guarantee, depending on which bracket you fall in, that if that was alimony, you will see your tax liability drop. There is a chance you may even end up getting a bit of bread back. Good luck! Oh yeah, as far as the audit, heck yeah!

The Mortgage Fraud Scandal Is The Biggest In Human History

We have long known that lender fraud was rampant during the real estate boom.

How to Avoid an IRS Tax Audit : Reporting Rental Properties on IRS Tax Forms

Question: $6500.00 Home buyers tax credit?

I qualify, but how do I file? I’ve searched for forms and what not, but all I keep finding is the $8000.00 info. Can someone explain the process of how to file this with the IRS?

Thanks, easy 10 points for someone.

Answer: While the law changed 11/6 (which is the effective date, Ryan), the form isn’t out yet.

You wait until the new 5405 is ready to use.

As of today, 11/18/2009, it isn’t out yet.

After 12 Months Some Homeowners Still Haven’t Received $8000 Homebuyer Tax Credit

Personal Finance Blog, ChristianPF.com published an article discussing how some of the homebuyers who filed for the $8000 first time homebuyer tax credit have been waiting for over 12 months without receiving their payment from the IRS.

Existing home owner $6500 tax credit questions