Home Buying in Madison>Question Details

Carla, Home Buyer in Madison, WI

I am a first time homebuyer and my fiance is not. We are using both incomes for the new mortgage. Any idea how much of the $8,000.00 tax credit we

Asked by Carla, Madison, WI Wed Oct 14, 2009

receive. We do not exceed the income guidelines.

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Carla

From the IRS site...S1. If a single person (Taxpayer A) qualifies as a first-time homebuyer at the time he/she purchases a home with someone (Taxpayer B) that is not a first-time homebuyer and then later that year they marry each other, is the credit still allowed?

A. Eligibility for the first-time homebuyer credit is determined on the date of purchase. If Taxpayer A, a first-time homebuyer, buys a house and then later that year marries Taxpayer B, not a first-time homebuyer, the credit is allowable to Taxpayer A. Taxpayer A may take the maximum credit.
http://www.irs.gov/newsroom/article/0,,id=206294,00.html

Q. If two unmarried people buy a house together, how do they determine how much each may take of the credit?

A. IRS Notice 2009-12 provides guidance for allocating the first-time homebuyer credit between taxpayers who are not married...http://www.irs.gov/pub/irs-drop/n-09-12.pdf

You can also take a look at the Form you'll fill out to claim the Credit...http://www.irs.gov/pub/irs-pdf/f5405.pdf

It has a lot of info on it and may help....IRS site for Homebuyer Tax Credit...http://www.irs.gov/newsroom/article/0,,id=187935,00.html

Tax assistance Centers in WI...If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you're more comfortable talking with someone face-to-face, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative across the counter. No appointment is necessary - just walk in.
http://www.irs.gov/localcontacts/article/0,,id=98349,00.html

Good luck, Dunes
1 vote Thank Flag Link Wed Oct 14, 2009
You should take a look at the IRS website regarding the First Time Homebuyer rules. Your situation is not uncommon. Under the Scenarios section, the IRS rules state something to the effect that you are eligible to take the full credit... and even if you marry shortly afterwards, the credit applies to the date of your purchase and you would still be eligible. Double check with an accountant to be safe! Good luck!
0 votes Thank Flag Link Wed Oct 14, 2009
Dear Carla,
If you are not married then you can purchase the home and the credit can go on your individual tax returns. Please check with a tax advisor for a true picture of what you can and can't do but below are the rules for the tax credit.

Here is another good resource and faq area: http://www.wisconsinhomebuyer.org/faqs.html



First-Time Home Buyers Only

* You are considered a first-time buyer if you have not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

Income Limits

* Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income (MAGI) is less than $75,000.
* For married couples filing a joint return, the income limit doubles to $150,000.
* Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit.
* Married couples who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax credit.
* The credit is not available for a single taxpayer who’s MAGI is greater than $95,000 and married couples with a MAGI that exceeds $170,000.

Local Restrictions

* The home must be located in the United States. Property located outside the U.S. is not eligible for the credit.

Effective Dates for the Tax Credit

* To qualify, you must actually close on the sale of the home on or after January 1, 2009 and before December 1, 2009.
0 votes Thank Flag Link Wed Oct 14, 2009
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