We own a Condo in my name. Can we still qualify for the $7500 tax credit if we buy a house in my wife's name?
My wife and I are contemplating moving to a different city to be closer to her work. We currently live in a condo, which is in my name (we never added her). Can we still qualify for the "first-time home buyers get up to $7,500 tax credit" from the recent Housing bill if we buy the house in my wife's name or does our being married negate us from the credit? Is this a smart thing to do or would we be walking a thin line?
Speak with your banker or mortgage professional about this. They will have the answer for you.
Eric, thanks for posting the answer. I was wondering the same thing myself and had not researched the answer. This credit is so new that there are a lot of misconceptions about it. I know a lot of people do not understand that the credit actually has to be repaid over 15 years, so it is essentially an interest free loan. Of course, I would accept a 15 year interest free loan any day!
Nevermind. I found the answer at http://www.federalhousingtaxcredit.com/faq.php#2
Hopefully this is helpful to others.
What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.
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