"You cannot claim the credit if any of the following apply.
The purchase price of the home (defined in the instructions for line 1 on page 3) is more than $800,000. This rule applies to homes purchased after November 6, 2009.
Your modified adjusted gross income is:
$95,000 or more ($170,000 or more if married filing jointly) and you purchased your home before November 7, 2009, or
$145,000 or more ($245,000 or more if married filing jointly) and you purchased your home after November 6, 2009.
See the instructions for line 5 on page 3.
You cannot claim the credit for any year for which you can be claimed as a dependent on another person's tax return. This rule applies to homes purchased after November 6, 2009.
You (and your spouse if married) are under age 18 on the date of purchase. This rule applies to homes purchased after November 6, 2009.
You are a nonresident alien.
Your home is located outside the United States.
You sell the home, or it ceases to be your main home, before the end of the year in which you purchased it. This rule does not apply if you are a member of the uniformed services or Foreign Service, or an employee of the intelligence community on qualified official extended duty as defined in the instructions for line 12 on page 4 and you sell the home, or it ceases to be your main home, after 2008. You can claim the credit on the return for the year of purchase or choose to claim it on your return for the year before the year in which you purchased the home if you otherwise qualify for the credit.
You acquired the home by gift or inheritance.
You acquired your home from a related person. This includes:
Your spouse, ancestors (parents, grandparents, etc.), or lineal descendants (children, grandchildren, etc.).
A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock of the corporation.
A partnership in which you directly or indirectly own more than 50% of the capital interest or profits interest.
For more information about related persons, see the discussion under Nondeductible Loss in Chapter 2 of Pub. 544, Sales and Other Dispositions of Assets. When determining whether you acquired your main home from a related person, family members in that discussion include only the people mentioned in 9a above.
You acquired your home after November 6, 2009, from a person related to your spouse. This includes your spouse's ancestors or lineal descendants (for example your parents-in-law or your stepchildren), and any relationships described in 9b or 9c above that your spouse has.
Keller Williams DTC
As always, I recommend to all my clients to seek the professional advice of a CPA.
Broker / Co-Owner
RE/MAX of Cherry Creek