Deed for Homebuyers Credit
My son & I purchased a home in Rochester for him to live in while attending college. He filed for the home buyers credit in Sept, and we just received a letter from the IRS asking for documentation. They want a signed settlement statement and a copy of the deed, among other things.
I pulled the file we got from the lawyers (we did not attend settlement & it was a cash deal), and the deed states that we paid $1 for the property. The settlement sheet contains no signatures. I emailed the attorneys to ask about the $1 on the deed and have gotten no response.
Will this be a problem with the IRS? We have a copy of the wire transfer receipt, and a title policy for the correct purchase price. Tax records also show the correct purchase price.