Good Morning Buddyboy

I don't way to be a naysayer, but since I personally worked last year to get my son in his first home by purchasing a bank owned property when it was available then assisting him in getting to a position he could get financed, he ended up purchasing the home from his mother, he does not qualify for the tax credit. Please read the answer below taken from the Internal Revenue Website and make your own determination or contact a tax professional to assess your personal situation.

If you are purchasing from an "immediate family member" then the answer to your question appears to be NO. You can go to the Internal Revenue Website http://(www.irs.gov) do a search for First time homebuyer tax credit and read all of the question and answers, but most importantly go to the form you would use to file for it and read it carefully. Hope this helps:


Q. Who cannot take the credit?

A. If any of the following describe you, you cannot take the credit, even if you buy a new home:

Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.


You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.


You do not use the home as your principal residence.


You sell your home before the end of the year.


You are a nonresident alien.


You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)


Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)


You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Dear Buddyboy:

The answer is yes, but keep in mind you have to buy it! You do not get the credit if you inherit it or receive it as a gift. Also keep in mind that the way the credit works is that it is $8,000.00 or 10% of the purchase price whichever is less! So if you buy the property for $10,000.00, you will only get $1,000.00.

Also your income has to be less than $75,000.00 if your single or $150,000.00 for a married couple. If your income is above that you may not get anything. Check with your lawyer or accountant.

If I can be of further assistance please let me know and good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665
Email: MitchellSFeldman@aol.com

Yes, you can purchase a home from a relative and qualify for the first time buyer tax credit. As long as it is a legitimate sale it qualifies. Please note, the transaction has o close brfore November 30 and with banks expecting to be backed up and the Thanksgiving holiday, you really need to start the process to purchase the house in early September. It would be a shame to miss the $8,000 by a few days. Good luck
Janice Styles-Hall

Hello BuddyBoy. As long as you are a first time home buyer the you will be intitled to it! Please let me know if this helped!

Best Regards,
Cookie Maldonado
First Capital Lending
3848 Colonial Blvd.
Ft. Myers, FL 33966
239-277-9244 ext. 208