How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13115
Experience:  15years with H & R Block. Divisional leader, Instructor
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

Appeal disallowed claim for First-Time Homebuyer Credit. I

This answer was rated:

Appeal disallowed claim for First-Time Homebuyer Credit. I just received a letter from IRS stating that " We disallowed your claim on Form 5405, First-Time Homebuyer, because our records indicate that you previously claimed one of the following: real estate taxes, Form 8396, Mortgage Interest Credit, mortgage interest points, Form 5695, Residential Energy Efficient Property Credit, or proceeds from real estate transactions."

This is probably due to the fact that we have filed real estate taxes under our name for my Mother's house which we do not live in and in which myself and my sister were put on the deed and made owners of the home a couple of years ago. Do I just need to send them a letter explaining that and proof that it was handed over to my sister and I?



Hello and thank you for using Just Answer.

Make your case in a letter to the IRS. Submit copies of any documentation that supports your claim. Or, talk directly to an agent by calling the phone number listed in the IRS rejection letter. If the real estate tax notice was in your name then you were allowed to claim the deduction even though the property was not your personal residence. You will need to show that your address was at a different location than the real estate tax you claimed.

If the IRS still denies your credit, request an appeals conference with your local IRS Appeals Office. You need to respond within 60 days to get assistance from a customer service representative and to have the right to appeal your case later in tax court.

I sincerely XXXXX XXXXX information is helpful,

Robin D. and 2 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
I'm sorry I should have mentioned that the tax credit is for a new house my Wife and I bought recently. Does that change anything for what I should do? or did you already interpret that just from reading my question? ;-D

Hello again,

It still applies. The address on the tax bill should not be listed on any tax return as your home address. This would be your proof that the property was not your residence. I interpreted that the credit was for the First Time Homebuyer credit and since you claimed the real estate taxes on a tax return the IRS denied the credit because they assumed you were claiming the taxes on your residence.


Robin D. and 2 other Tax Specialists are ready to help you
Customer: replied 6 years ago.
Great Thanks For your Help! --Clicking Accept Wink

Related Tax Questions