Chantel O'to…, Home Seller in Sanford, FL

Will I still qualify as a first time homebuyer if I have a timeshare?

Asked by Chantel O'toole, Sanford, FL Tue Feb 2, 2010

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Chantel,

I run into buyers who have decided to relocate to Orlando and their Timeshare was one of the reasons for their motivation, they like the area and spent their timeshare days checking out the area.

below is copied from the IRS website, http://www.irs.gov/newsroom/article/0,,id=206291,00.html

Q. Who is considered to be a first-time homebuyer?

A. Taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase are considered first-time homebuyers. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, ''''or had an ownership interest in, another principal residence'''' at any time from July 2, 2005, through July 1, 2008.

Key here is ''''or had an ownership interest in, another principal residence'''' , a timeshare isn't a principle residence.

Call a CPA or stop by AMSCOTT or one of the other Tax Services or call the IRS direct just to put your mind at ease.

Hope this helps,

Broker Dave
GRI, ePRO, Real Estate Broker & Realtor

Visit my Bio located here on Trulia, just scroll your mouse over my picture and left click, also visit my website for our short sale information center, complete foreclosure list and innovative tools helping with your real estate decision in the Central Florida area.

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Web Reference: http://OrlandoHomeStore.com
1 vote Thank Flag Link Tue Feb 2, 2010
Chantel:

Here is the answer provided by the government's $8,000 Tax Credit Website:

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 the home ownership 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. However, IRS Notice 2009-12 allows unmarried joint purchasers to allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

Therefore a time share will not affect you.
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Tony Vega
avegapacheco@aol.com

http://www.SearchKissimmeeHomes.com
2 votes Thank Flag Link Tue Feb 2, 2010
Hi Chantel,

Greg is right. Most people only reside in a timeshare unit for one to four weeks out of the year so that would not be considered your primary residence. At best it would be considered a vacation home. I would also recommend contacting a local CPA/Accountant for the best information as this is not tax advice in any way.

The complete Q&A on the government tax credit can be found at:
http://www.irs.gov/newsroom/article/0,,id=206291,00.html

Please let me know if there is anything else I can assist you with.

Thank you,

Aaron Mighty
Broker/Owner
Mighty Realty Inc.
http://www.MightyRealty.com
C: (407) 914-7799
F: (877) 657-4373
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1 vote Thank Flag Link Tue Feb 2, 2010
The Q and A from the IRS website states:

"Q. Who is considered to be a first-time homebuyer?

A. Taxpayers who have not owned another PRINCIPAL RESIDENCE at any time during the three years prior to the date of purchase are considered first-time homebuyers....."

Key word being "principal residence". I would not think a timeshare would be considered your principal residence so you may qualify, HOWEVER, I AM NOT A TAX EXPERT AND YOU SHOULD DISCUSS THIS WITH YOUR LICENSED TAX ADVISOR.

At the very least you may qualify for the $6500 credit for repeat buyers.
1 vote Thank Flag Link Tue Feb 2, 2010
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