Real estate matters: Clarifying long-term homeowner tax credit eligibility
I meet all the criteria; however, in my case I owned and lived in a home from September 2005 until December 2009 (52 months). It isn't quite 60 months but I did live there for five consecutive years. I have all the documentation to show that I was in the home during a five-consecutive-year period but I want to see something in writing, from the IRS, that states "60 months."
It seems cut and dry (one year equals 12 months), but the way the rules are worded it leaves room for interpretation. Form 5405 doesn't ask for specific months -- it just asks "were you present during the five-consecutive-year period?" That leads me to believe I could be eligible.
A: The 60-month figure that I cited is from a tax expert I spoke with about the $6,500 tax credit. According to CCH, a publisher of tax information, the five-year period is supposed to be five complete years. Five complete years is 60 months.
However, if you look at the revised Form 5405, this is what it says in Part II, Question 3: "A long-time resident, enter $6,500 ($3,250 if married filing separately). A long-time resident is an individual (and that individual's spouse if married) who has owned and used the same home as that individual's main home for any 5-consecutive-year period during the 8-year period ending on the purchase date of the new main home and meets other requirements discussed in the instructions. See instructions for documentation to be attached."
