Asked Too Late

Today TaxMama hears from Thomas in Ohio with this question. “I have been married four years. My wife owned her own home before our marriage and we lived there for the last four years. I was never on that title. Now we purchased a home together to live in and have kept her previous home for a rental. Am I eligible for a first time homebuyer credit?”

Hi Thomas,

What you’ve done makes good financial sense.

Unfortunately, it won’t get you the First-Time Homebuyer Credit.

I wish you had spoken to a tax professional before buying this home. If you had bought it with only you on title, you would have qualified. But with both of you on title, you lose the credit.

If either of you owned a personal residence, you’re both disqualified. Unfortunately. This is something I’ve discussed at length with IRS.

http://www.irs.gov/newsroom/article/0,,id=186831,00.html
Taxpayers who owned a main home at any time during the three years prior to the date of purchase are not eligible for the credit. This means that first-time homebuyers and those who have not owned a home in the three years prior to a purchase can qualify for the credit.

So sorry to be the one to give you this information.

That’s why I emphasize the importance of consulting with a good tax professional before making major financial moves.

And remember, you can find answers to all kinds of questions about the first time homebuyer credit and other tax issues, free. Where? Where else? At TaxMama.com

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