Home Buying in Colorado>Question Details

E S, Home Buyer in 80202

First Time Investment Tax/Incentives Implications

Asked by E S, 80202 Sun Feb 1, 2009

Hello all,

I am exploring the option of going in 50/50 on a property with some family members in Florida. I currently live in Colorado and do not own any property. I am working to figure out how the lending process will work if I go in 50/50 with another party and also figure out the implications of owning a property in Florida that is not my primary residence. Am I considered a first time home buyer for that house or is it purely an investment? Also, will I lose any benefits when I go to purchase my first home to actually live in here in Colorado (first time home buyer incentives or primary resident incentives)? Could I still be considered a first time home buyer if the house in Florida is just an investment? Would it make sense to form an LLC for the investment property so that it is considered a business? Therefore I may be able to personally still qualify for first time home buyer incentives?

Thank you, just trying to figure this out.

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Answers

2
Hello Shift,

I would strongly consider speaking with a CPA or other qualified tax person to answer your question as Realtors are not able to give tax advice. I think if you can purchase any type of investment at this time it is a wise choice as the market will someday recover from the slump we are currently in. I would also think speaking with some Realtors in Florida will be a good place to start as well. Different areas have different programs that can create different obligations for buyers and sellers. I know this is not the best Answer for what you are looking for but I do hope it helps.

Mark Kinslow II
Coldwell Banker
1 vote Thank Flag Link Tue Feb 10, 2009
Shift,
You need to talk to a good real estate attorney.
Most likely he/she will tell you that forming an LLC is good protection but I am not sure which state to form it in. I don't know if Florida will recognize a Colorado LLC.
I may be wrong but I believe if you buy it under an LLC, it will not be considered your first home.
Brent
0 votes Thank Flag Link Mon Mar 23, 2009
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