Home Buying in 02465>Question Details

Pjhip, Home Buyer in Salem, MA

Do I qualify for $8000 tax credit if I owned a home overseas?

Asked by Pjhip, Salem, MA Tue Jul 14, 2009

I owned a home in Europe for a couple of years, I sold it last year but have paid no income tax/made no claims at all during that for US returns. Does the definition of first time buyer cover just the US (and territories) property market?

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3
If you have an CPA you use every year, he or she can answer this question better. If you have reported your 2008 return with deduction of your oversea home, you may not eligilble for the first time home buyer tax credit. I have many clients who have a home in their original country and they are eligible for the tax credit. Please ask your accountant before you go out and start buying your home.
0 votes Thank Flag Link Fri Jan 29, 2010
This is an excellent question and probably one best referred to a tax accountant. Try checking out this website for possible contact information.

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

Good luck
0 votes Thank Flag Link Sat Jul 18, 2009
This is an interesting question. The IRS form 5405 simply states that you (or spouse) can claim the credit if you "did not own a main home during the 3 year period" prior to buying the house that you wantg the credit on. That would indicate that you wouldn't qualify. It specifically mentions that the house you buy must be in the US, but it doesn't limit previous home ownership.

If in doubt, ask your CPA or call the IRS.
Web Reference: http://homes.debn.net
0 votes Thank Flag Link Tue Jul 14, 2009
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