Home Buying in 32205>Question Details

Nancy Bateh, Real Estate Pro in Jacksonville, FL

If two people are buying a home together, one is eligible for first time home buyer, the other is not eligible

Asked by Nancy Bateh, Jacksonville, FL Tue Jul 21, 2009

does anyone know how the first time homebuyer tax credit will be applied in this situation?

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Answers

7
http://www.federalhousingtaxcredit.com is a website owned by the National Association of Home Builders, they are not an authority on tax information. It does have some information that contradicts the IRS info.
0 votes Thank Flag Link Tue Jul 21, 2009
This link will direclty answer your question and it's from the IRS website.

Regards,

Blair
0 votes Thank Flag Link Tue Jul 21, 2009
Go to http://www.federalhousingtaxcredit.com to read the frequently asked questions. It adddresses this particular situation. There you can get the CORRECT answer plus a few more.
0 votes Thank Flag Link Tue Jul 21, 2009
Tax Credit Qualifications...

First time home buyers must purchase a home on or after January 1, 2009 and before December 1, 2009 to be eligible for $8000 tax credit. You must be a first home buyer, which means you cannot have owned a home for the past three years.

First time home buyers must use the home as a primary residence. First time home buyers cannot purchase a home from a close relative. Finally, first time home buyer must make less than $75,000 for a single taxpayer or less than $150,000, if filing jointly. For more info see my website which contains a link to the IRS Q&A.
0 votes Thank Flag Link Tue Jul 21, 2009
All parties do not have to be eligible.

From the irs:

First-Time Homebuyer Credit: Scenarios

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.

S2. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much?

A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A's primary residence.



For more scenarios check here: http://www.irs.gov/newsroom/article/0,,id=206294,00.html
0 votes Thank Flag Link Tue Jul 21, 2009
All parties buying have to be first time homebuyers non ownership for 3 years. depending on what you are buying and if not married, one of can try to qualify and later put the other on the deed. Check with your local Attorney for an expanded version.
MaureenToombs
REALTOR
Pittsford, NY 14534
585-389-1031
0 votes Thank Flag Link Tue Jul 21, 2009
If a property is being purchased jointly, both have to be eligible for the First Time Homebuyer Tax Credit. So if Buyer A is eligible and Buyer B has owned a residential property in the last 3 years, the tax credit will not apply. One possible way around this is for the eligible homebuyer to purchase the property by himself...meaning qualify for the mortgage and take title in his name only. That may limit the possible purchase price and not work if both are needed to qualify for the loan.

Kelly Pratt,CRS,GRI,SRES
0 votes Thank Flag Link Tue Jul 21, 2009
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