Home Buying in Brooklyn Park>Question Details

Erinelmo, Home Buyer in Brooklyn Park, MN

If I am on the title with my grandfather and it was a cash sale but now he wants to do a contract for deed,

Asked by Erinelmo, Brooklyn Park, MN Sun Jun 28, 2009

do my boyfriend and I still qualify for the $8000 credit?

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Answers

6
Have you closed on the property? Have you been living in the property? There's not enough information to answer your question.

However the IRS has recently ruled that contract for deed home purchases may not qualify for the First Time Home Buyers Credit because technically you don't own the property until the last payment is made. Which means your contract for deed would have to be paid off prior to December 01 2009.

To be absolutely sure you would need to contact a tax professional or the IRS because even the IRS is unsure of the answer because state laws may affect the final decision.
1 vote Thank Flag Link Sun Jun 28, 2009
0 votes Thank Flag Link Mon Jun 29, 2009
You and/or your boyfriend might qualify for a mortgage on this property and you could, then, close before the tax credit for first time buyers. I am a mortgage broker with some good ideas. Feel free to call or email me about the specifics. Liz, 612-986-4105
0 votes Thank Flag Link Sun Jun 28, 2009
Thank you for your help. I appreciate your time.
0 votes Thank Flag Link Sun Jun 28, 2009
Oops, missed the grandparent thing. Nope, that won't fly with the IRS. Although the boyfriend would still qualify as long as they're not married at the time of purchase. He would have to take the full credit.
0 votes Thank Flag Link Sun Jun 28, 2009
Additionally,my understanding is that if you buy from a close relative you do not qualify.And Michael's advice is right on the money. you do not own the property until you close.
0 votes Thank Flag Link Sun Jun 28, 2009
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