Home Buying in Rochester>Question Details

Amy Mcfadden, Home Buyer in Rochester, NY

My husband and I bought the house from my parents. Why can't we get the tax credit?

Asked by Amy Mcfadden, Rochester, NY Sat Jan 3, 2009

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7
You may be referring to the tax credit of up to $7,500. That program is a program where you receive a $7,500 tax credit for purchases of primary residences from April 9, 2008 - June 30, 2009. That amount is paid back in $500 installments over 15 years.

I don't see anything pertaining to limitations due to buying a home from your parents. The only thing that might be a flag to the government would be if the purchase weren't for market value or otherwise looked like it was done to just get the credit. I know a lot about the program ... but haven't read the entire text though and there may be other fine print that I am unaware of.
0 votes Thank Flag Link Tue Jan 20, 2009
Tax credit as for the interest paid or sheltering income. What is the tax credit you were thinking of here .

Thanks
0 votes Thank Flag Link Sat Jan 10, 2009
Amy, I should have proof read my answer better. At closing you would have adjusted taxes on that day . The taxes you would get credit for is taxes adjusted from the day of closing to the end of the year. If they were paid! Your closing statement will have these amounts on. However sometimes hard to read. Bob Kirby Broker RE/MAX First
0 votes Thank Flag Link Sun Jan 4, 2009
If title transfered to your name you should be able to take tax credits on taxes paid. If it was an arms lenth transaction and had standard adjustments at closing , You should have had you reinburse you parents for any taxes paid to the day of closing. Example closed and title transfered October 1 2008 the adjustment at closing for the taxes paid up to the end of the year is your deduction just like and interest on the loan. All tax questions should be at the advise of a tax proffessional. I've been selling real estate since 1974 . Started when I was 21 and have listed and sold thousands and thousands of properties. Bob Kirby Broker RE/MAX First 585.719.3540
0 votes Thank Flag Link Sun Jan 4, 2009
Did you transfer title do you have your loan OR is this owner finance thru your parents? If owner finance you would not receive a tax credit.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sat Jan 3, 2009
Amy,I believe nx yr you can,since they are always a yr in arrears,so your parents paid them.But good ?

TJ
Web Reference: http://tjroberts.remax.com
0 votes Thank Flag Link Sat Jan 3, 2009
Amy,I believe nx yr you can,since they are always a yr in arrears,so your parents paid them.But good ?

TJ
Web Reference: http://tjroberts.remax.com
0 votes Thank Flag Link Sat Jan 3, 2009
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