Home Buying in Fargo>Question Details

Jpf125, Home Buyer in North Dakota

I bought a house 2 years ago and received an $8000 tax credit. I since have been married and have a child and my small home is not big enough.

Asked by Jpf125, North Dakota Wed Mar 28, 2012

I bought a house 2 years ago and received an $8000 tax credit. I since have been married and have a child and my small home is not big enough for the 3 of us. If my wife buys a home under her name alone and I continue to make my current home my primary residence (sleep 4 nights/week and continue to receive mail, etc) am I in jeopardy of losing my tax credit? As there any way around having to pay it back under my circumstances (family grew by 2)?

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The lender who originated the loan has nothing to do with this tax credit, it is an issue between you and the IRS. The other part of your question, having to do with your wife buying under her name alone, is one that can be answered on here. She would have to qualify for the new purchase on her own if you are planning to take out a mortgage on the property.
There is one other thing you have to keep in mind, besides the fact that it seems like you are trying to circumvent IRS policy on this issue, if you are filing taxes as a married couple, which address do you use? Also, will the IRS consider that you are doing something fraudulent when you do what you say you are doing? You can check the guidelines on the IRS website. I did this recently for a client who purchase a co-op apartment and received the credit, has since married and had a child, and wants to buy another home.
0 votes Thank Flag Link Mon Apr 9, 2012
You might want to speak with an accountant. I do know that the clients that I work with in Bismarck were told they have to live in the home for 3 years to prevent having to pay back any of the tax credit. I know if they close on a new house before the 3 years is up, they have to pay back a prorated portion of the money they recieved. You shouldn't have to pay it back if you own the home until that point. Double check with your accountant to be on the safe side. Good luck!!
0 votes Thank Flag Link Mon Apr 9, 2012
You need to discuss this with your tax advisor. This is outside of the scope of a real estate agents area of expertise.
0 votes Thank Flag Link Fri Mar 30, 2012
I recently called my lender and they advised to call a tax professional.
0 votes Thank Flag Link Fri Mar 30, 2012
I will have to check with a lender to get the answer to that question and get back to you. Have you talked to the lender that originated your loan?
0 votes Thank Flag Link Thu Mar 29, 2012
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