A. Section 36(c)(1) requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase.
This is regardless if you are qualifiying as an individual or joint application and regardless if you married filing single.
A first-time homebuyer is an individual (and the individual's spouse, if married) who has not had an ownership interest in a principal residence (within the meaning of Section 121 of the Internal Revenue Code) during the three years before the date a new principal residence is purchased.... more
Realtors are not permitted to give legal advise, but I can tell you in my experience with commercial real estate (and residential) that your attorney has probably agreed to extend the closing date based on good reasons; please communicate well with your attorney to know what is going on.
I have had this happen with one of my transactions and in that instance, all contingencies had been met and the buyers were not coming to the closing table, and all notifications have been sent to the buyers that we were going ahead with the closing, they had to appear or be in default of the deal. Once in default, procedures were initiated to retain the down payment money and the end result was that the contract was cancelled and monies retained.
Please open a line of communication with your attorney to get a full understanding of what is happening in your particular situation and what your options are.... more