Today TaxMama hears from Tonia in Virginia who says. “My mother added me as co-owner on her two homes. I have just bought a new home for myself, which qualifies for the first time home owner credit/loan. Will being co-owner disqualify me?”
Dear Tonia,
Re-reading the information about the First-Time Homebuyer Credit, it says “You did not own any other main home during the 3-year period ending on the date of purchase.”
I looked at a couple of other places, too, including the law. The law says nothing about being on title to other real estate, vacation homes, etc. So, that’s in your favor.
You’ll find more information about the credit here, in IRS Publication 530:
https://www.irs.gov/publications/p530/ar02.html#en_US_publink100046409
Be careful though. Did you live with mom? If your principal residence was one of the homes to which your mom added you on title, you could be disqualified for the credit. If neither home was your principal residence, it’s not an issue.
Enjoy the new home – and the tax credit. But remember, it’s just a loan. You’ll have to repay it over the next 15 years.
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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- IRS Publication 530 :: Tax Information for Homeowners
- TaxMama’s MarketWatch.com Column :: The hidden tax traps in the housing-rescue bill – and Tax credit for new homeowners
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