Amend 2008 and 2009 for FTHBC ?

[artp]

Client purchased new home for $120,000 in Feb 2009. He elected to claim the $ 7000 credit on his 2008 return (original). In 2010 he reported the first year pay back amount. Now he wants to go back and amend 2008 to remove the original credit of $ 7000 and amend 2009 to claim the higher credit $8000 and amend 2010 to get back the amount he paid back based on the 2008 return.

As far as I can tell the original election to claim the credit in 2008 should be able to be revocked, but I can not find anything positive to support this. Looked back through the many posts on FTHBC but did not find anything on point. Has anyone done this ? Appreciate your input.

If this is allowable, would it be advisable to file all of the amended returns together in a single mailing asking the IRS to offset the additional tax owed on the amended 2008 with the credit for the amended 2009 ?

[Jack from Ohio]

The credit he is/was eligible for is based soley on the date he purchased the property. There are no options to "...amend 2008 to remove the original credit of $ 7000 and amend 2009 to claim the higher credit $8000..."

I wonder about the motivation of the client. What I stated above has been published knowlege since the FTHBC was started.

How is it that this is even a question??

[jainen]

>>the date he purchased the property<<

Since he purchased the property in Feb 2009, he was allowed to take the credit on his 2008 return. But it was still an $8000 credit with no repayment schedule. Be sure to use the December 2009 version of Form 5405 and instructions from the IRS website, even though you are doing a 2008 amendment.

Do not revoke the election to claim in 2008, but amend it to $8000. 2009 is fine as filed, but amend 2010 for the incorrect repayment. Attach full documentation to EACH return mailed in separate envelopes, and tell him to expect a long wait for his refunds.