Sadly, it appears that the tax credit is coming back. This time it appears to apply to those who owned a house for 5 years or longer for $6,500. The bill should be signed within a week. Look at the details on a government website after that. Or just go to the IRS and ask.

I think you will need to show that you will occupy the house you are buying. But again, the details are waiting until the actual signing into law happens.

BREAKING NEWS regarding the extension and EXPANSION of the tax credit program!!!

Although your best route would be to consult a qualified CPA, you can down-load the form on the IRS website and research the guidelines there to see if you qualify. I know that there is something specific that states that if this is a non-arms length transaction, which means that you are buying from a relative, you would not qualify. On the house that you currently own that you inherited. I would think that if you deducted the taxes paid on that house on a recent tax return you would most likely be excluded, however it is an interesting question.

The credit is based around the amount you paid for the house. If you paid nothing for it, you can't get any rebate

Because the home comes from a relative (whether you inherited or purchased it) that would not qualify for the tax credit

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.

Check with a CPA to be sure.

Thanks for the answers... Actually what I intended is that I previously had a house that I inherited however now I am providing it back to my parent. I am currently looking to purchase a house but was wondering if the tax credit would apply?

Thanks

Interesting question, and situation. I do not know the answer, although my suspicion is that one would not qualify by inheriting a house. The law is for, "1st time buyers," not "1st time owners." In addition, with no consideration being given for the property, I don't see how it could be argued that it would qualify.

I will stay tuned for other responses...

GREAT answers from the other two agents, if you have any further questions ask a CPA . If you inherited a house you don't have a loan title is clear.

Each year you own this home you do receive annual tax benefits

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Mr. Lee.

Answers to most commonly asked questions on the topic of the tax credit program can be found on the following website.
http://www.federalhousingtaxcredit.com/2009/faq.php

Best wishes

Probably not since it has to be for a home that you have purchased and the home purchased can not be from a relative.