Home Buying in Appleton>Question Details

Dennis Hanser, Home Buyer in Appleton, WI

Can two single taxpayers qualify for the tax credit?

Asked by Dennis Hanser, Appleton, WI Wed Mar 11, 2009

I own my own home (rental duplex) and my girlfriend doesnt, if we buy a home together will we qualify for the credit? We both are under earning limits and she doesnt own a home.

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9
Hi Dennis: What a great question. I recently posted a blog Titled "21 Top Questions Answered on the New $8,000 Tax Credit "- If you would like to view it in it's entirety, please visit my Appleton, WI Blog at http://www.wisconsinconsumerhotline.com

Here is the answer to your question - I hope this helps.

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, unmarried joint purchasers may 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.

If you have any other questions, please feel free to give me a call or drop me an email. Make it a great day!

Gwenn Tanvas is a Certified Mortgage Planning Specialists who specializes in Government Programs such as FHA, State and Federal VA and USDA Rural Housing Loans. Visit her website for more information, on-line calculators and a secure on-line application. She is able to assist with transaction throughout the state of Wisconsin. Her offices are located in Appleton, Oshkosh and Green Bay and offers the convenience of one-stop shopping. http://www.WisconsinLoanTips.com or http://www.MortgageProsOfWisconsin.com she can also be reached for comment or to answer questions via email at gwennt@centurytel.net
1 vote Thank Flag Link Wed Mar 11, 2009
Dennis: The $8000 tax credit is only available to a buyer if they are a 1st time buyer or they have not owned a home for 3 years.
0 votes Thank Flag Link Wed Sep 16, 2009
The key's here are "up to $8000" and only applies to a first time home buyer or somene who has not owned a home for at least three years and must meet specific criteria. Give me a call 920-993-4032 if you have any other questions, I would be happy to help out.
0 votes Thank Flag Link Sat Aug 29, 2009
You will have to decide how much interest each party owns- a good question to ask yourself is "If you sell it tomorrow how will the money be split between all parties?" Depending on the answer to this question you can decide what percent each person has in the house and if you are the only one that does not qualify for the credit- you deduct your percent from 100%- giving you what percent you own- based on this a portion of the credit can be allocated to you and other parties.

Example if you own 50% and your girlfriend owns 50%- if she meets the other qualification she should receive $4000 (50% of $8000)- if you don’t qualify then the other 50% is not given out to anyone.
0 votes Thank Flag Link Sat May 9, 2009
Hi Dennis,

The short answer is no. Definitely call a tax expert but the credit is available for homestead. Two people can claim the credit if they are married filing jointly. Filing jointly is the key here.
I know several great tax professionals in the area so give me a call 203-1155 or email me polly@balloonhomes.com if you would like a referral.

Polly
Web Reference: http://www.thepollyblog.com
0 votes Thank Flag Link Wed Mar 11, 2009
This applies to a first time home buyer or somene who has not owned a home for at least three years and must meet specific criteria. If your name will be appearing on the mortgage and or deed I do not believe the credit would apply. But I am a realtor not a tax expert so:

Taken from the Realtor.org information site: Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser. You must meet certain criteria so talk to a tax consultant and get the specifics.
0 votes Thank Flag Link Wed Mar 11, 2009
You would have to buy two seperate homes. This is a credit for a person(s) per home
0 votes Thank Flag Link Wed Mar 11, 2009
You would have to buy two seperate homes. This is a credit for a person(s) per home
0 votes Thank Flag Link Wed Mar 11, 2009
Hi Dennis,

I is just for first time buyers.

If your girlfriend buys the house alone, then she can take the credit if she meets the income limits.

For more details, check with your accountant or your Congressperson's office.
Web Reference: http://fredglick.com
0 votes Thank Flag Link Wed Mar 11, 2009
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