Does anyone know the process in a buyer claiming their 8k tax credit if he's already filed? I have client who already filed her income taxes for 08' and she wants to buy the house she's renting. What needs to happen now? Any sort of Amendments to her taxes? And if so, what form?

After closing she files an amended tax return for 2008 using IRS Form 5405.  The form explains who cannot claim the credit so it's good to review it before entering into a purchase agreement if she is counting on the tax credit.

The other side to the equation is my client is buying it on a REC.  Other then the amended form 5405 does she need to send anything else as proof?  i.e. HUD-1 or closing statement, purchase contract. 

Note: they don't want a "formal" closing to save money.  They are doing themselves and I'm helping them with this(i'll get the loan down the road).

Once they close and record the sale then they can file the IRS form.  I am not a tax preparer, they should check with a tax professional but my understanding is that they don't send anything else in with it.  If they are audited they will need the HUD 1, etc. 

For those of you who need it, here is where you can get Form 5405.