Comments on: First Time Home Buyer Tax Credit – 2009 Version

By: Michael

Michael — Mon, 26 Jul 2010 15:29:35 +0000

@Claudia: Curiously, the definition of a related party does not include siblings. As such, the purchase of a home owned by your siblings is not excluded. (Had you purchased it from your mother, it wouldn’t have qualified). So be sure to structure the sale so that your siblings are the owners, not the trust which could make it murkier.

@HK: Yes, however, not every home is owned jointly. As such, if your step-parent owns a home that your parent does not, it would not be excluded if you purchased it from the step-parent alone.

By: HK

HK — Thu, 22 Jul 2010 23:26:57 +0000

Michael,

Isn’t a stepparent married to your blood parent by definition? So can you claim the credit if you purchase from a stepparent?

By: claudia wirtanen

claudia wirtanen — Wed, 21 Jul 2010 13:03:01 +0000

If I bought the home that my decesed mother left in her revocable living trust from my three brothers and three sisters do I qualify for the the tax credit

By: Michael

Michael — Thu, 01 Jul 2010 13:02:59 +0000

@Natalie: No worries, just make sure you and your fiance take all the credit and your father-in-law takes none. Your percentage ownership is irrelevant so long as you own at least some of it. Congratulations!

By: Natalie

Natalie — Thu, 01 Jul 2010 07:53:11 +0000

Does it matter what percentage ownership we each take as tenants in common?

By: Natalie

Natalie — Thu, 01 Jul 2010 04:09:49 +0000

My fiancee and I are purchasing a condo with my fiance’s dad. We are paying all cash. Both my fiance and I qualify for the first time home buyers tax credit but my fiance’s father does not. Can we qualify for the tax credit? It will be mine and my fiance’s primary residence but not his father’s. Does it matter how tenancy is take in order to qualify?

By: Michael

Michael — Thu, 10 Jun 2010 12:44:11 +0000

@Frankie: Not really sure of your objectives here (trying to keep as much of the credit for yourself vs. keeping as much as possible on a combined basis). Regardless, you’re not married. If you sell her 1/2 the home, you’re still selling the home and you’d have to pay the credit back. Best I can do for you is my original answer – good luck!

By: Frankie

Frankie — Wed, 09 Jun 2010 22:03:56 +0000

and one last question! Am I correct in assuming that I cannot act similar to a married person by transferring the home and thus shifting liability to my ex-girlfriend should she decide to sell prior to the 36month cutoff. Is there anything that allows for the “married” rules to apply to unmarried individuals?

By: Frankie

Frankie — Wed, 09 Jun 2010 21:56:28 +0000

Thank you for you response. The Act appears to provide for a LIMITATION BASED ON GAIN. Would I be able to sell her my portion of the home for an ammount equivelent to my credit to avoid having to repay the credit?

By: Michael

Michael — Wed, 09 Jun 2010 19:24:35 +0000

@Frankie: I actually don’t know, so I advise you contacting the IRS. What I’d propose is you both amending your previously filed returns so that you claim none of the credit (and therefore must pay it back) and she claims all of it. Whether that will work is unknown (hence the call to the IRS) but if you get someone to work with you and file each with a copy of the other and a letter of explanation, you’d have a shot. Good luck!