Can my husband claim the $8k tax credit if I own a home from before? Neither of us have occupied it

Asked by Beatlelovr, Hamilton, NJ Sat Aug 15, 2009

We are newlyweds... The tax code says it does not allow either of us to claim the credit if either of us have a "stake in a principal residence". What if I can prove I have never lived in it? It was a condo I bought from my parents, but it was always too far away from our jobs to occupy. I'm not sure how I could accomplish proving this on our tax returns, and would rather not have my tax return flagged.

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Dallas Texas, Agent, Dallas, TN
Sun Aug 16, 2009
When in doubt confer with professional contact a local CPA .

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0 votes
Dev, , Princeton, AL
Sun Aug 16, 2009
You can find more information (QA) about first time home buyers here. http://www.devrealtor.com/atj/user/AdditionalGetAction.do?pa…
Take a look
Web Reference:  http://www.devrealtor.com
0 votes
Don Tepper, Agent, Burke, VA
Sun Aug 16, 2009
As the others say, talk to a tax professional. The key, as you note, is "principal residence" and whether you owned it--not really whether you ever lived in it. A tax professional may say that if you took depreciation on it, advertised it for rent, etc., then it was not your principal residence--it was a rental property.
0 votes
Bill Eckler, Agent, Venice, FL
Sun Aug 16, 2009
Beatlelover,

This is a matter probably best referred to your CPA for their expert opinion on your unique set of circumstances.

Good luck
0 votes
Darren Moreno, Agent, Lakeland, FL
Sat Aug 15, 2009
Based on the information you have posted I believe you are not eligible for the Tax credit. If you had not been married yet then your husband would be eligible for the tax ownership because you are not legally married to him. The Tax credit does not define the home has to be a principal home. I have had a buyer in the similar situation you are in and his home is in another state and he never lived in it but because it shows on a title search it shows you as a home owner.
Please do check with a tax advisor though there is always a possibility I could be wrong but it sounds that you are in the same scenario my buyer was in...

I have also attached an article on the Baltimore Sun on the $8000.00 Tax Credit to

http://weblogs.baltimoresun.com/business/consuminginterests/…

Hope this helps!!!!

Thanks!!!
0 votes
Keith Sorem, Agent, Glendale, CA
Sat Aug 15, 2009
Good advice below
Ask a knowledgeable CPA.
The main point is to help people buy a home. If you've already been able to do that, and are able to buy another, I would not focus on the tax credit if the answer is "no". Focus on getting into a home during this great buyers market..
0 votes
Allison Ables, Agent, Newberry, FL
Sat Aug 15, 2009
As always, talk to a tax professional. But I believe that if you or your spouse were on the deed to a property anytime in the last 3 years, then you no longer qualify. But as Fred has mentioned, you need to talk to a tax professional because the home was not your primary residence and may affect your eligibility.
0 votes
Fred Griffin, , Tallahassee, FL
Sat Aug 15, 2009
See a Tax Attorney or CPA for Tax Advice regarding "Main Home"

http://www.irs.gov/pub/irs-pdf/f5405.pdf

IRS Form 5405:

Look at the section titled Who Can Claim the Credit

In general, you can claim the credit if you are a first-time
homebuyer. You are considered a first-time homebuyer if:

You (and your spouse if married) did not own any other
main home during the 3-year period ending on the date of
purchase.

Main home. Your main home is the one you live in most
of the time. It can be a house, houseboat, housetrailer,
cooperative apartment, condominium, or other type of
residence.

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Best wishes,
Fred
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0 votes
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