Protect your Pocketbook with a Home Warranty
Even while both home prices and sales continue to tank nationwide, literally millions of Americans are still navigating the buying and selling of homes process, and for a great number, the overwhelming amount of details and choices can become
overwhelming. With so many things to think about when selling or buying a house, it can become a challenge to look into even routine facets of the process, things like the value of a home warranty.
Lelia Chapman, a VP of field sales at American Home Shield,, one of the older and larger home warranty providers in the nation, says that a trusted home warranty plan can help in providing an important degree of confidence for a home buyer and assist in distancing a seller’s property from other competition.
Jun 30, 2012
Dealing With IRS Tax Credit Rejections
The IRS has been rejecting first-time home buyer claims from anyone who shows a Form 1098 Mortgage Interest Expense in their prior year files.
In many cases, the applicants are entitled to the credit because their previous mortgage interest deduction is for a timeshare, mobile home, boat, or other recreational property.
If you are in this unfortunate position, here is some advice from Enrolled Agent Eva Rosenberg, who authors the Web site TaxMama.com.
• Respond to the IRS immediately and tell them why their rejection is wrong. Be prepared to prove that the mortgage the IRS is seeing isn’t on a personal residence. First-time home buyers are entitled to own other types of real estate and still get the home buyers credit, so provide proof that the previous mortgage was on something else.
Source: TaxMama.com, Eva Rosenberg, EA (06/16/2010)
• Send a letter explaining the situation and providing proof of a previous rental or other non-ownership living situation, including copies of rental contracts for the last three years, an old driver's license showing that address, utility bills, etc.
• Home buyers who believe the IRS may view their situation in this way should be proactive, providing proof that they are a first-time buyer when they initially file for the credit.
• Anyone who is rejected after two attempts to explain the problem to the IRS should call the Taxpayers Advocate Service toll-free, (877) 777-4778, their Congressman, and their Senator, Rosenberg advises.