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Marc Wilson, Home Buyer in Oakland, CA

Claiming $8,000 credit if on title only?

Asked by Marc Wilson, Oakland, CA Thu Jul 30, 2009

My girlfriend and I are in escrow. As she just finished many years of school, she has much debt in student loans so we decided to put the mortgage in my name only. However, we will add her name to title at the signing. I won't qualify for the $8K credit because my salary is above the phase-out. Can my girlfriend claim the credit since she is on title and has never owned a home? Thanks for any assistance!

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4
Hi Marc:

I think Ann answered the question the best.
I have been led to believe that because your girlfriend is on title she can claim the credit but you being the one holding the mortgage and depending how you file your taxes - could potentially pose a problem.

A good local source to get your question answered may be a title company - give Eden Toothman a call at Chicago Title - 510.527.2453

Good luck.

Scott
http://www.scottward.me
415.225.4593
0 votes Thank Flag Link Thu Jul 30, 2009
My understanding is that you can be a single, under a certain income limit, married or separated, under a certain income limit. The web site answers a similar question this way, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. So, definately consult your lender, your accountant and go to this web site and submit the question to the irs: http://www.federalhousingtaxcredit.com/2009/faq.php

Remember also, you'll need to get your sale closed and recorded (to be safe) before the Thanksgiving holiday (register of deeds is closed that thurs and fri, for recording deeds). The $8K tax credit expires at midnight on DEC 1st... (the Tues after the holiday). So time is really getting short and lenders are letting us know that there is NO EXTENTION on the time and they know there will be a made rush! So, sooner is better.

The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts. (this is directly from the Federal Housing web site!!!!)

Always consult your accountant, your attorney and the IRS... everyone's in a different tax situations. HOPE THIS HELPS...
0 votes Thank Flag Link Thu Jul 30, 2009
Hello Marc, this is one very good question. You absolutely have to go direct to the IRS for clarification or see a professional tax advisor, the rest of us are in no position to give sound tax advice. Good luck, I hope you/your girlfriend will get the credit.
0 votes Thank Flag Link Thu Jul 30, 2009
Here's a place where you can check to see if there are examples such as yours that is posed in the frequently asked questions.

http://www.federalhousingtaxcredit.com/2009/faq.php

And don't forget to check with the IRS http://www.irs.gov/newsroom/article/0,,id=204671,00.html

When in doubt, go to the primary sources. Everything else is hearsay.
0 votes Thank Flag Link Thu Jul 30, 2009
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