Home Buying in 01843>Question Details

hector h,, Other/Just Looking in 03079

If I cant buy a house by myself and need my sister so we can buy it together, how does the tax credit work?

Asked by hector h,, 03079 Thu Jul 2, 2009

she's not interested in buyin a house but lives with me and is willin to cosign with me... do we get the tax credit in half? or only one person claims it? if so who ? when doing incometaxes for the mortgage interest and property tax, do we have to split in half or can just one claim it and the other get the standard deduction?
thank you

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5
Kevin Vitali’s answer
My guess is if you can prove you pay all of the mortgage and shes not deducting any of it, that you can take the entire deduction. I definitely would not do anything with out checking with an accountant first.
0 votes Thank Flag Link Thu Dec 16, 2010
Harry N,

You may wish to review the information provided by the IRS for the public.

http://www.irs.gov/newsroom/article/0,,id%3D187935,00.html

Expanded Tax Break Available for 2009 First-Time Homebuyers
http://www.irs.gov/newsroom/article/0,,id=204672,00.html

Tax Form.... http://www.irs.gov/pub/irs-pdf/f5405.pdf

Good hunting, Dunes
0 votes Thank Flag Link Mon Jul 6, 2009
Hi Harry- That's a nice sister. If she's willing to be on the mortgage note, but not on the Title, even better for you. That way, legally, if something were to happen or there was an argument, it is only your name on the Deed; it's 100% yours. Even though the obligation to pay would be on both of you.
Good answers below.
If you don't have an accountant and you'd like to speak with one, please let me know. I don't really like to give tax advice to people unless I can help it :) . If you need any help with a preapproval letter, contact me anytime. Thanks and good luck,

Ken L.
0 votes Thank Flag Link Mon Jul 6, 2009
Assuming both of you qualify for the tax credit, you can split the credit any way you want. This can be good if one person has a higher tax liability or if one person has income that exceeds the income cap.
0 votes Thank Flag Link Thu Jul 2, 2009
Harry,
If neither of you has owned your principal residence in the last 3 years, you are most likely eligible to share the deduction. Remember that there are still income limits (75K for single persons/$150K for married couples).

Great question & answer section here: http://www.federalhousingtaxcredit.com/2009/faq.php
Web Reference: http://www.SNHhome.com
0 votes Thank Flag Link Thu Jul 2, 2009
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