If you plan on claiming the home buying tax credit you cannot file an electronic return.

Congratulations on the purchase of your new home! If you plan on claiming the home buying tax credit you should know that you cannot file an electronic return with the IRS. All tax returns that are claiming the home buyer tax credit must be filed with a paper return.

According to the IRS site:

"Taxpayers who claim the credit on their 2009 tax return will not be able to file an electronic return, but instead will need to file a paper return."

Please visit with your accountant or tax professional for more information.


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If I restructure my mortgage will I be required to report the debt as income?

You should consult with a tax professional or attorney regarding your personal situation. Generally speaking the Mortgage Forgiveness Debt Relief Act of 2007 allows you to exclude the income from discharged debt on a principal residence as a result of a mortgage restructure or foreclosure. This act covers debt forgiven from 2007-2012. You can visit the IRS for additional details.


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