Q. I bought a house with my parents and I am listed as co- borrower on the loan, but at the time I was living in California and my parents were in Arizona where the home was purchased. My name is on the deed as well as my parents as" Tenants in Common" I have since moved my primary residence to Arizona but still I commute to work in California. If I am a first time home buyer am I eligible to claim for any percentage of the 7,500 tax credit considering they are on the title and deed too? Is there any rule to a person not living in the state at the time of the purchase? also are my parents considered the primary borrowers? and a co-borrower have no claim to the home credit even though I did contribute money toward the purchase?
Sorry, your question is not clear to me. When did you purchase the house? Is it your principal residence now or are your parents living there? - ema

Hi Eileen,

Forgive me if this has been answered. I have a faint recollection that it was on another thread, but can't find it again. It seems that simple new house tax credit form begs more questions. I am about to buy a house with my mom, who is not considered a new home buyer. The section below is from the IRS Form 5405. To me, it reads that one out of the two non-married persons purchasing a home can take the credit if the other doesn't qualify. But, I find the second part, about the other person not taking a part of the credit they don't qualify for, to be confusing. It can imply an income restriction, in my mind. It's really ambiguous. But, it could also mean that one of the partners could qualify, and perhaps so would the person above who purchased with a fiance, since they don't fall under the "married" rule yet. If so, maybe they want to change their legal wedding paperwork if the marriage in May would negate their credit. Or ammend last years tax return?

Can one person, a qualified first-time homebuyer, claim the credit if their partner (non-married) on a home purchase does not qualify as a first time home buyer?

This is from form 5404:

Line 1. If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount
allocated cannot exceed the smaller of $7,500 ($8,000 if you purchased your home in 2009) or 10% of the
purchase price. See Purchase price on page 3.

Part II Credit
Note. A reasonable method is any method that does not allocate all or a part of the credit to a co-owner who is
not eligible to claim that part of the credit.

Again, thank you so much for all of your help!

I think what they are saying is that if you are buying a house with a non-spouse, you guys can split the credit. But if one of you is ineligible for the credit, that person can't take part of the credit. There are income limits. I believe it starts to phase out for singles once income reaches $75,000, but check the blog to make sure. eileen

Hi Eileen,

I did a search on the IRS site and found this great link that answered my question. It also implies that the fiance above can take that credit if they can either ammend last years return (if allowed, I think it is) If not, they could if they postpone the legal marriage certificate. I forget the rules about being considered "married" for the entire year if you get married at any point in that year. They should check that out at the IRS site. Or you can let them know.

Here's the link:

http://www.irs.gov/pub/irs-drop/n-09-12.pdf

This is the rule regarding two unmarried persons when one does not qualify as first time homebuyer: (anyone might want to look at this link, because there is futher clarification that outlines the allocation of the credit based on form of ownership, percentage of ownership, and respective down payment

Example 4.
A and B each contributes $50,000 towards the $100,000 purchase price of a residence and owns a one-half interest in the residence as tenants in common. Under § 36(b)(1)(A), the allowable credit is not $10,000 (10 percent of the purchase price) but
is limited to $7,500. However, B is not a first-time homebuyer within the meaning of § 36(c)(1). Therefore, no portion of the credit may be allocated to B because B is not eligible to claim any portion of the credit. A may claim the entire allowable $7,500

This is good news for my situation. I hope you find the link helpful while graciously answering all the questions people have. I have been studying IRS regs for years, but often the language can be very confusing to the layperson. What you are doing for people is just great and appreciated!

Thank You!!!!!

I had my house before me and my wife married. I bought it in 2002 and in 2005 we had to file bancruptcy. My house was not re-affirmed thus included, but we lived in it till now making normal payments to the bank but it doesnt show on my credit, it shows included in banruptcy. She has been approved for a new home and would be first time home buyer. Would we still be able to get the credit? Any help would be great. The company she is buying it from and the Mortgage lender are saying she can, but I have my doubts. Thanks
Mike

Hi, it's not clear to me what happened to your other house? Did you lose it in 2005 and buying a new home or or are you still living there? You can't have owned a home in the previous three years.
According to the tax professionals answering questions on the blog - check their answers under taxes on the blog - both spouses have to qualify as a first-time homebuyer to get the credit.
I'm curious: Did the mortgage company had asked if you qualified or not?

I have been living with my parents for the last year. I purchased my first home in Oct of 08. I am the primary on the loan and they are the secondary. They provided the Down/Closing costs, The question is are they going to be write off that money in any way? They are wanting to claim me as a dependant for that year, If they do that does it disqualify my for the 7500$ for first time home buyer.

It's not clear to me. Are you living in their house, or are you living in your own home? If you are living in the new house as your principal residence, I believe you can get the $7,500 credit. - ema

I am purchasing a home with my father. Neither one of us have owned a home in the past 3 years. I am not on the loan, but I am on the title and will be making all the payments. I also put down 1/2 the down payment.

Because the loan is in his name and he lives in CA it is being considered a secondary residence on the loan.

But I will be using the property as my primary residence and I am on the title.

Do I qualify for the first time home buyers tax credit?

yes. - eileen

I had a trialer house that is worth 6700.00 and have lived in it since 2001. In May of 2008 I bought a home worth 79500.00 do I quailfy for the First time home buyers credit?

I'll check. Someone else asked whether a trailer could be a first-time home. Check the blog in a few days and we'll post it along with other questions. eileen

Q. I am purchasing my first home in April 2009. My parents are going to co-sign the loan but will not live in the home. It will only be my primary residence. Will I still qualify for the credit?

Yes.- eileen

Q. I am purchasing my first home in April 2009. My parents are going to co-sign the loan but will not live in the home. It will only be my primary residence. Will I still qualify for the credit?

Yep. ema

I just purchased a house for the first time. I have been living in a house my parents had purchased 10 years ago but more recently they had changed the name on the title to that of myself and my sisters. If my parents house is in my sisters, and my name do I qualify for the tax credit still?

You can't get the credit if you are purchasing a house from a relative. Is that what you are asking?
ema

My girlfriend and I are looking at purchasing a new home costing $135k. She has never owned a house before (her income is ~$20k/yr). I bought a house 2 years ago (my income is ~$80k/yr). She can't get approved for the full $135k amount, unless I co-sign on the loan. If I co-sign, is she still able to get the $8000 first-time home buyer's tax credit? Thanks! -Ryan

The tax pros say it doesn't matter who is on the loan, it is who is on the deed that matters. If you're just on the loan and the house is hers, she gets the credit. - ema

Great! As a follow-up question...

Will an FHA mortgage allow me to co-sign as mentioned above? I found a ton of information about "non occupying co-borrowers", but nothing in regards to "occupying co-borrowers". It seems on the tax side, everything will work out fine, it will just be a matter of whether we can get the FHA loan. Thanks!

Sorry, I don't know much about FHA and tax pros probably don't know the details either. You should check with FHA. - ema

My father and my husband are buying a home together. My husband has never owned a home but my father has. Can my husband still claim the credit or not? Thank you. My father will be living in the third floor apartment of the new home.

I'll forward your question to a tax pro. Check back on the blog in a few days for an answer. - ema

I own the home my boyfriend and I have lived in since 2005. I want to sell this home to both he and I as we love this home. He is a first time homebuyer. Would this qualify for the 8000 tax credit?

I'm not sure. I'll ask a tax pro. You will not qualify, and I'm not exactly sure how the IRS would view your boyfriend. check back on the blog and I'll post answers when they come in later this week. -eileen

My wife and I were renting a property from my grandparents and now we are going to buy it from my grandparents. It would be as if my grandparents were the lender and i was paying the payments directly to them. We are both first time buyers also we have to pay this back? and what documentation is needed to claim this

Check the IRS Web site at www.irs.gov, and the first-time homebuyer credit. You generally cannot get the credit if you are buying a house from a relative, but I don't know if the law detailed which relatives. - ema

If the Borrower is eligible for the 2009 tax credit and the co-borrower is a current homeowner, making the co ineligible...the Borrower is eligible for the full $8000/10% correct? Does it matter how the mortgage,title or deed are written to include the co-borrower?
I have received so much mis-information on this. Thank you for helping us clarify this issue.

According to the tax pros, it doesn't matter who is on the loan. What matters is who is on the deed as owner. - eileen

Hi, My husband and I bought a house in 2005. I'm the co owner. Can I be a first time buyer?

No. If you already own an interest in a house, you can't be considered a first-time homebuyer if you're buying another. ema

This may be confusing, but I will try my best to be clear. In 1999, I was 18 and in college in Georgia. My mother purchased a condo and put both of our names on the deed. During this time, she claimed me as a dependent on her tax returns. I moved to California in 2004, where I have worked and lived ever since. I filed CA income taxes and my primary residence was in California. My mother put the GA condo up for sale in 2004 when I moved, but it didn't sell until March 2006. My mom let a friend of mine live in the condo while it was on the market, but never claimed it as rental property. In January 2009, I purchased a condo in California using an FHA loan. My name is the only name on the loan and deed. Would I qualify for the 2009 first-time homebuyer credit?

Hi, we're having a live chat on the blog at 11 a.m. friday with the IRS. We'll give them your question. Check during the live chat or later on the site for your answer. ema

Dear Eileen,
I have read several of your questions and answers. They pertain to the 2008 tax year. Are there changes to the requirements for 2009 tax year?

We are not married, but jointly buying a home in 2009. I am a first time home buyer and she is not. Can I claim all of the rebate of $8000.00 on my taxes as explained in 2008?

Our taxes are individually filed. Since I qualify and she does not am I correct in stating that I can claim this rebate soley even though she has an interest in the house?

Thank You,

John Wagner

Hi, we're having a live chat ont he blog at 11 a.m. friday with the IRS. We'll give them your question. Check during the live chat or later on the site for your answer. ema

My boyfriend and I purchase our home in March of 2009 so we do not qualify for any tax credit.

However, I am wondering if I can claim all of the interest and points myself since that will get us the biggest amount back? The 1098 is listed under my boyfriends SS since he is first on the loan.If we have to split it, it would be coniderably less and if he claims it all it will still be less than if I can claim everything.

Hi, we're having a live chat ont he blog at 11 a.m. friday with the IRS. We'll give them your question. Check during the live chat or later on the site for your answer. ema

My wife and I purchased a house at fair market value going through all the standard procedures (loan, title, closing, etc). The seller just happened to be my father. Do I still qualify for the first time home buyers tax credit? If not, why?

Check back on the blog on Friday, 11 a.m., where we'll have the IRS answer your question. - ema

I separated from my ex-wife in Feb. 2006, at which time I left our home never to reside there again, and she was given exclusive use of the house per our separation papers. The divorce was finalized March 2007, and she was then officially given the house and had to refinance in just her name within a year. She did get my name off the loan around May 2008. Am I considered a first-time buyer since court papers ordered that this was not my residence since Feb. 2006? (Also, my name was on this loan as a result of a refinance, as she owned the home solely before we married. I don't know if this matters or not.)

We'll forward this question to the IRS for a live chat on the blog tomorrow at 11 a.m. Check back then or later for an answer. ema

I read all the questions / answers but still a bit confused and not sure what is the best way to go. The home I live in was purchased in 2007 by my then boyfriends dad. Our rate was too high so he bought it for us. We got married later that year in 2007. We still live in the house. His father is ill and wants to put us on the loan or at least on the title in case something happens. We were going to just get put on the deed for now and start saving money for a down payment to purchase it in the next year. Then I read all this about the homebuyer credit. We (husband and myself) would be first time homebuyers, we file taxes jointly - would we qualify for the credit if we were put on the deed only? We have lived in the house for 2 years, pay all the payments, insurance, taxes etc directly to the mortgage company but are not on the loan. We did a land contract but have never filed it at the recorders office.

The first-time home buyer's credit does not apply to houses purchased from relatives. ema

Me again - we are not purchasing the home from our relative (my husbands father) - we are being put on the deed. His father may or may not be on the deed at all. We have not decided. If we are put on the deed (and his father is taken off) - would we qualify. I ask because I see above where you state the credit is determined not by the loan but by who is on the deed.

We are having a live chat on the blog tomorrow with the IRS at 11 a.m. Stop by and ask that question. I seem to recall from somewhere that you have to have an actual sale, and it can't be a close transaction like a parent selling a house to a child. Otherwise, every parent could put a child's name on the deed and get $8,000, right?

My daughter is a full time college student 22 years old. I claim her as a dependent. She currently lives in my house. She would be a first time home buyer. Can we jointly purchase a home for her to live in after June 1 2009 and before Dec 1 2009 and her claim the 8000 refundable tax credit and I claim her as adependent for 2009

Hhmmm. I don't know. I can run your question by a tax pro and post it when I get an answer. This being April 15, don't expect an immediate answer. I looked on the IRS Web site but didn't see any mention about dependents. I'm just not sure, though. - eileen

Hello, I moved from Australia in 2007 and I married my wife (U.S citizen) and we are currently in the process of buying a house. We are looking at the $8000 first house buyers tax and I cannot find a answer to my question. I owned a house in Australia and recently I have sold the property, now the problem is can my wife and I apply for the $8,000 even thou I owned a house outside America. Can you please tell me if the $8000 is only if you have not owned a property inside America in the last 3 years or is it if you owned a property anywhere in the world. Thanks.

Check back on the blog in a few days. I'm forwarding some questions to tax pros for answers and will post yours along with others. - ema

A friend has quick claim deed his property in 2007 to me and my husband now my husband and I are plainning on getting a new property since we don't have any mortgages just the title of the home we are living in as it was claim deed to us. will we be qualify as first time home buyer

Not sure. I will forward your question to a tax professional once I get enough other questions from readers. Check back on the blog later for your answer - ema

Hello, My name is ashtray09 and I posted a question on April 21st regarding the $8,000 tax credit. Did you have time to find a answer? Thanks.

Hi, I sent a batch of questions to a tax professional yesterday. I don't know if your question was in there, but it will take a few days for the answers to come. Readers have lots of questions on this, and tax experts don't always have a lot of time to dig up the answers. So, hang tight, and check the blog in a few days. - eileen

Did you get an answer to Missy's question that she posted April 9th at 3:03? I also have a full time college student that we claim as a dependent (because we meet the support test) and if we jointly purchase a home and it's his primary residence and he's on the deed, can we get the credit? Also since he's a starving college student, he has no taxable income and pays no tax I'm assuming since it's a refundable credit that he could still claim the $8000 credit for 2009?

Sorry, no answers yet back from the tax people. - ema

My dad quit claimed his home to me and my mom in August of 2005. In August of 2006 I quit claimed the home to my mom because I got married. My husband and I just purchased a home in May 2009. My husband is a first time home buyer but I'm not clear if I am. Would we qualify for the $8000.00 credit?

I'm running some questions by the IRS. I'll include yours. Check back on the blog for answers. eileen

If 2 first time owners purchasing a home together not married can both get the $8,000 tax credit towards the home or is it $4,000 each

You split the $8,000 whichever way you want, but no more than $8,000 can be taken. - ema

My ex-husband and i separated June, 2005. We were divorced Feb. 2007. I have never owned a home my name was not on the deed or mortgage. November 2008 he transferred the deed over to me and i refinanced the home Jan. 09. Now the home is in my name do i qualify for the $8000 first time homeowners tax credit.

I don't think so. You have had an ownership interest in a house in the past three years, so you are not a first-time homebuyer. The fact that you refinanced doesn't make a difference. You didn't buy a new house, you just changed your mortgage.

Any readers have a different opinion on this? - eileen

I own my residence as 50/50 tenants-in-common with one daughter who does not live with me. My second daughter, who has never owned a house, is just graduating from school, starting a job locally, coming to live in the house, and wants to buy out her sister's 50% share. Will daughter #2 qualify for the $8000 homebuyer credit if she buys her sister's half of the house from her before Dec 1, 2009?

Not sure. You can't buy a house from a close relative, like a parent or grandparent, but one of the tax professionals said you can buy it from a sibling. I will pose this question to the IRS, so check back in several days on the blog for the answer. - eileen

I have been legally seperated for a year now, but have not filed for divorce. I am looking at buying a house and this will be my first, however, my husband owns one. Does this mean I will not qualify for the tax credit? Do we need have our divorce final by the time of signing for it to count? What if we've filed, but it's not final yet?

Any insight on this would be greatly appreciated.

I'm not sure. But I'll run your question by a tax professional, so check back on the Web site several days from now. - ema

I have been divorced for the past five years but my name is still on the deed to the house that I Purchased with my ex-wife. She is still living in the house. I have not lived there or paid any part of the mortgage since our divorce. My divorce papers state that she gets the house. Do I still qualify for the tax credit even though I don't own this home?

Not sure, I'll ask the IRS, but not sure it looks so good if your name is still on the deed. Check back in a few days for an answer - ema

I have owned a home since 2003. I want to add my boyfriend to the deed. will he qualify for the 8,000 credit. we are not realated

The credit is for houses newly purchased between Jan. 1 and through Nov. 30. You already bought the house. Adding him to the deed isn't a purchase. - ema

This is me again. I have owned my home since 2003 and you said that if I added my boyfriend to my deed he would not qualify for the first time homebuyer. Would it be different if I quit claimed it to him, would he then be able to claim the credit.

I'm not sure. I think he would have to actually buy the house from you, money exchanged. But I am sending questions to the IRS for an answer, and I will forward this one. Check back in a couple of days for the answer. cheers.

Ok I perches a house under my name only October 2008 I received the $7500 tax credit me and my married Jan 3 2009 she has not owned a house ever if I put here on the quick claim deed here on the house would she qualify for the tax credit if we file married but separate filings

No. Besides, you already received a credit for the purchase of your home.- ema

bought trailer in 1989 paid off in 2001 do i qaulify for tax credit

This credit is for someone buying a house now. Are you selling your trailer and buying another? If not, you won't qualify because you made your purchase 10 years ago. - ema

i'm buying a house now do i qaulify even though i had a trailer i bought in 89 payed off in 01

I will forward your question to a tax expert. Check the blog in a few days for your answer - ema

I am a student and will be purchasing a home which I plan to live in for 3 years while renting to two roommates for $300 apiece. Does my home qualify as a primary residence (for which I will still receive the tax credit) or a rental property?

I will run your question by a tax pro. Check the site in a few days. - ema

I am about to get into a purchase & sales agreement for a home that is a short sale. The original buyers just walked away because the lender took over 4 months to approve the deal then wanted an extra amount of cash. The house is an EXCELLENT deal but I'm afraid of not closing before the Dec. 1st deadline for first time homebuyers tax credit. Should I look for another house or risk losing the $8,000 while waiting for a bank response for this short sale? Thank you!

What does the lender or the real estate agent say about the speed of the sale? - ema

I am about to get into a purchase & sales agreement for a home that is a short sale. The original buyers just walked away because the lender took over 4 months to approve the deal then wanted an extra amount of cash. The house is an EXCELLENT deal but I'm afraid of not closing before the Dec. 1st deadline for first time homebuyers tax credit. Should I look for another house or risk losing the $8,000 while waiting for a bank response for this short sale? Thank you!

My realtor said he will hound the lender daily and hope for the best but the short sale has to get approved through Countrywide, who to my understanding can often take months to give a response.

Well, it's hard to say what you should do. I would suggest your realtor would be in a better position of telling you whether you should trust that Countrywide will come through, or whether you should keep your eyes open for another possibility, just in case.

Readers, any advice for Erin?

My fiance and I are wanting to buy a house before we get married. She just sold her condo and I have never owned a home. I would qualify as a first time home buyer if we bought a house now.

If we buy a house together in July/August (while single) then get married in October 2009 can I still get the $8000 credit when we file our 2009 taxes?

First, congrats on the pending nuptials. Second, congrats on the house. It looks like you would qualify if you bought the house before the marriage. For more info, check out the taxes category of the blog. I've posted answers to many questions - even some similar to yours - and more details may be listed there. ema

My husband and I are closing on a house in 2 weeks. We file separate returns due to his taxes goign towards back child support. I am the primary on the mortage and he is the secondary on the mortage, if I do not out him on the deed, will I be able to claim the full 8000.00 credit?

Please check the tax category of the blog where this question has been answered. Couples filing separately, I seem to recall, can each claim $4,000. - ema

Sorry, I reread your question. I'll forward it to a tax pro, but his portion of the credit may indeed go to fulfilling his child support obligation. - ema

I bet I have a scenario that you have not heard yet. I have a 50% interest in an LLC with my parents, who each have a 25% interest. We purchased a home in 2009 in the LLC's name for $170,000, which I use as my personal residence. Aside from this, I qualify as a first time homebuyer. Can I still get the $8,000 credit even though my name is not on the deed, and I am not a personal guarantor on the loan?

You're right. This isn't a scenario I've heard. I will send it along to the tax pros and see what they say. Check back in a couple of days on the blog for the answer - eileen

I am currently going thru a divorce. The ex bought a house this year and received her $8000 credit. I have never owned a house, but am planning on buying one this year. I am not on the ex's house deed. If our divorce is finalized before the purchase, and I buy the house with my mother on the deed (who currently owns another house) will I be eligible to receive the $8000 credit as well?

Hmmm. This is a tough one. I'm forwarding it to a tax expert. Check back in a couple of days for the answer -ema

I have 2 homes on 1 set of property, my sister is leasing one home to own, the tax deed and mortgage is in my name. Can she still apply for the first time home buyers credit or even claim the house on her taxes?

I'll run this by tax pros later. Check the site later.

My husband and I separated in May 2009. He is residing in the home I co-signed for because we were married. He has 6 months to assume the mortgage in his name only. I have purchased a residence in my name. Do I qualify for the credit?

I'll run it by a tax pro. Check the blog later. eileen

My brother took a loan on a house and put my name on the title/deed only of the house. When he refinanced - my name was taken off. This is less than 3 years ago. Does this mean I do not qualify for the tax credit?

Check the blog in a couple of days. I'll post an answer from a tax pro - eileen

hi, we had a trailer on a lot that we owed.but in 2008 we got a new house can we get the new home credit. does oweing a trailer count as a home.

Mobile homes qualify as a home. I'll run your question by a tax pro anyway. Check the blog later this week for an answer. - eileen

I divorced 3.5 years ago and signed a quit claim deed, giving my ex-wife full interest in the house. Today I just found out that she never refinanced the mortgage and my name has been on the mortgae this whole time. Do I qualify for the first time home buyer tax credit? I have not lived in the house in over 4 years and have been renting since, but my name came up on the mortgage with a credit check.

I'll forward you question to the IRS for an answer. Check the blog later for the answer. -ema

I am getting ready to have a home built in August 2009 and I don't think that it will be completed by the deadline December 1st. Will I be able to get the tax credit of $8,000 next year?

Not sure. I'll ask the IRS. Check back on the blog later for the answer - ema

My name is Jill I bought my house in July 2005. Then I got married in May 2008. I foreclosed on my house in June 2009 and my husband bought a house July 2009. Does he qua
lify for the first time home buyer credit?

Not sure, but it doesn't look good. I'll run it by the IRS and see what they say. Check the blog later this week. - ema

Hi I purchased my only and first home in feb 2009 I am married but i always file head of household . my name is the only name on the loan and the title deeds because he could not qualify to buy a home also we were living separately will i be able to file head of household and get the full $8000.00 credit or married filing seperately since his name is not on any loan or deeds

If you spouse doesn't have an ownership interest in any other house, I don't see why you shouldn't qualify. - eileen

Thank you so much for answering everyone's questions here. I have one as well --

A couple years ago, my mother quit claimed her house from just her to the two of us together. We live in the house together. There is no mortgage, and I have never had a home loan or anything. She pays taxes and insurance, and I just occupy part of the house. Do I not count as a first-time homebuyer because of this quit claim deed?

Thank you again very much.

Thanks, Julie. You have an ownership interest in the house, right? I'm afraid that leaves you ineligible for the credit. We posted a lot of the questions under the "taxes" category. I believe the IRS answered a couple on quit claims. eileen

My son is a full time college student 18 years old. He currently lives at home and will go to school in the fall. We are building a home in another city that could be his personal residence for 3 years (he'd have to commute there on days he's not physically at class). If we put him on the deed as joint owner, I think he'll qualify as a first time home buyer. Does he need to be on the loan (if so we pay a higher rate)? Can I still claim him as a dependent, or should he file his own return claiming himself? If the house is not completed by Dec 1 (i.e. closing statement not dated by then) but he can actually live in the house, will he still qualify for the credit?

Hmmmm. Not sure. Let me ask a tax pro. Check on the blog later for an answer - ema

I recieved the $8000 tax credit on a condo I bought in February 2009. The bulk of the money went to renovations and paying down debt.

Now, due to obligations of the military, I am being forced to relocate just about 100 miles away.

So, If I move will I be forced to pay back the $8000? My wife and I were considering leaving it as a "primary residence" status for one of us and moving... Any way of getting around paying it back while moving away? I don't know what else to do.

Thanks for you help,
Josh K

Great question. I'll ask the IRS and another tax professional for advice on your situation. Check back on the blog for the answer. - ema

Hi, my name is Alex. I never rec'd a response to this question:

Hi, I just went into contract with my fiance on a property. We are getting married on 9/13/09. It turns out we cannot get approved together for the mortgage but I can get approved individually for the mortgage. The deed and mortgage will only be in my name. I earn $100k/yr and she earns $50k/yr. 2 Questions:

1) If we get married, and then I purchase the property in my name only, and then we file jointly, will we get the $8k tax credit?

2) Would this result change if I purchased the property under my name only, and then we got married on 9/13/09, and then we file jointly, will we get the $8k tax credit?

In both scenarios the title and deed will only be under my name.

Any help would be greatly appreciated. Time is really of the essence here.

Alex

Hi, I forwarded your question with others to the IRS, but sometimes people have some very complicated questions and then it takes days for me to get answers.
If you purchase the property after you are married, then both of your incomes are taken into account. The credit starts phasing out once adjusted gross income reaches $150,000, so you might be eligible for the full credit still.
I called the IRS again, and they said they would jump right on this question. Check back on the blog.

First-time homebuyer credit This is worth 10 percent of the purchase price, up to a maximum credit of $8,000. To get it, you must buy a house between Jan. 1 through Nov. 30 this year. You cannot have owned a house in the prior three years. And the credit starts to phase out once income reaches $75,000 for singles and $150,000 for married couples filing jointly.

I have a question:
My boyfriend bought a condo in 2007, I am on the deed but not the mortgage holder, would I be able to qualify for a first time homeowner credit. I have no benefit from his mortgage as he claims it on his taxes, his credit score is the one that improves. I am looking at buying a place in my name only.
Thanks

Hmmm. Not sure. Is that your principal residence?

I see the question from back on July 20th, and I fall into the same situation. I bought a single-wide mobile home back in 1994. I was told then that it would not disqualify me from the "First-time Home Buyers Loan" which aren't around anymore. Now we are having a house built. I currently qualify for the USDA loan (A loan backed by the federal government which I qualify for because my current housing is not deemed as adequate for my family size and I'm considered middle income). We definately qualify based on income, I'm just not sure if I will qualify because of owning and living in this trailer. Any help you could provide would be GREATLY APPRECIATED!!!

Hi, do you still own the mobile home? If so, I'm not sure you qualify, but we need more information from you. - ema

Hello and thank you in advance for your time and efforts to answer my question regarding the 2009 $8000 tax credit. I am not qualified to take the credit, as my name was on the deed of a house with my soon-to-be ex-husband. BUT, my son does qualify for the credit. Can we be listed as co-owners on the deed for the three year period without his name being on the mortgage? If so, I would want to use the credit for the down payment. Would he have to apply for a "Bridge Loan" under his name and credit? I don't know how receiving the $8000 would work? Thanks, Karen

I'll send this to the IRS. Check back on the blog for the answer later - ema

My wife owns a commercial building in which she has run a business out of while we have lived in the loft apartment above her work for years. We built and moved in a new house in 09. This is the first house I have owned (same for her with the exception of the commercial building). The house is in my name. We file taxes jointly. Will we be able to obtain the $8,000 tax credit? Thanks

I am about to purchase my very first home. However, due to the economic crisis I have been forced to rent in another state to earn a living. Will I be able to claim the tax credit?

Not sure. The house has to be your principal residence, and I'm not sure if that's the case in your situation. Let me ask the IRS. Check back later on the blog for the answer. - ema

My daughter is starting her first year in college in one state and has an opportunity to purchase her first home in another state. How will it work as far a residence? Also once she buys the prop can we no longer take her as a deduction on our taxes?

Gail, great questions. On Tuesday - Sept. 8 - the blog is hosting a live chat at noon with an IRS official who will answer questions on the credit. I am going to forward your question to him now and we'll post the response on Tuesday. If you have others, join the chat or send them along ahead of time. - eileen

My ex-husband already owned a home when I married him in 2001 he refinanced in 2002 and put my name on the deed and mortgage. We got divorced in 2007, the house was awarded to him. I got remarried thesame year and now me and my husband are buying our first home. Do we qualify as first time home buyer?

Not sure since you did have an ownership interest two years ago. But I'll run it by the IRS. Also, check the blog under the taxes category, because I think something like this might have been answered before. - eileen

My girlfriend and I bought a home in 2009 -- both names on the mortgage, both names on the deed. We both qualify as first-time buyers, but the seller was my mother (paid the market rate, went through normal channels, etc.). Does she still qualify for some or all of the credit? Thanks in advance.

I believe you girlfriend would qualify, you won't. But I'll forward this to the IRS. Check back on the blog later for the definitive answer. ema

I got married in March 2009. My husband was previously married (divorced finalized in 2007). He had bought a house with his ex-wife in March 2006. The house was foreclosed on in February 2008 (ex-wife was supposed to have refinanced the house to get his name off the note as per the divorce decree, but instead elected to stop making payments completely).

As a result of his foreclosure, I had to get my mother as co-borrower on the mortgage for the home we just bought in July 2009. She has not had a mortgage in 10 years when she and my father paid off their house. My husband is not on the mortgage note, but his name is on the title.

I have never owned a home previously, but considering the circumstances that were in place during the purchase of our home, would I be able to take advantage of the first time homebuyer's tax credit?

But it seems that your husband owned a house in 2008, which would not make you eligible. But I'll foward the question to the IRS. Check the blog later for the answer - eileen

I am purchasing a home in MI with my father. He currently lives in FL. This will be a secondary home for him and my primary home. I will be on the title but not on the mortgage. Will I qualify for the first-time homebuyer credit?

check back on the blog in a few days. I'm forwarding questions to the IRS, and we'll post answers as we get 'em. - eileen

Also, you said this would be your primary home, but didn't mention if you ever owned a home before. If you owned one in the past three years, you won't get the credit.

IM PLANNING TO PURCHASE A HOME SOON, BUT MY FATHER IS GOING TO BE THE PRIMARY BORROWER AND IM GOING TO BE A CO SIGNER. NOW, HE FINISHED PAYING OFF HIS HOUSE MAY 2007, HE ISNT GOING TO BE LIVING WITH ME HES JUST HELPING ME WITH THE LOAN WOULD I STILL QUALIFY FOR THE 8000 TAX CREDIT ?

You should, if it's your primary residence and you haven't owned a home in the past three years. - ema

My mom needed to refinence her house but she needed me to co-sign for her. I have never owned a house before does that make me afirst time home buyer?

No. Your mom just changed the financing on her house. You did not buy a house. - ema

Thanks in advance for any information you may have. My husband and I are wanting to purchase a home in the next couple of weeks, but will be doing this by "Land Contract" . We are both real first time home buyers, neither one of us has ever owned a home before. I was able to find on the IRS's website that land contract purchases did qualify, but my issue/question is arising from the the "deed"..My father-in-law, who currently owns his home, is helping us with the downpayment. He wants his name to be on there with ours until we have paid him back...Is that going to disqualify us from the 8,000 tax credit??? I sure hope not, because that is what we are counting on paying him back with!!!In reading through all the questions, I wasn;t able to find anything like this..Please help!!!!

I believe the IRS has said in other questions that someone else helping out with the downpayment and putting their name on the deed won't affect your ability to get the credit. But you deal must close by Nov. 30 to get the credit. - ema

I purchased a deed restricted affordable unit in early 2005. The City has a silent second on the property in the amount of $200,000 (lien), roughly more than half of the original purchase price. I got married shortly after. We are purchasing another property and close escrow on Nov. 13, 2009. This will be our primary residence and will be selling the old unit. I realize that my wife and I are not eligible for the $8,000 credit; however, can I obtain any portion of the new $6,500 credit? One of the requirements is to have been living in the home for five years. I'm close to the five year mark, but will be a couple of months off. If the intent of the new credit is to capture homebuyers that want to upgrade, why is there any limitation AND is there anyway for me to be eligible? For example, could I stay at the old property for another four months and rent out the new one?

Hi, we might write about the new version of the tax credit, and I'll run this by someone. Keep checking the site and the paper. -ema

My husband and I are closing on a house in 2 weeks. We file separate returns due to his taxes going towards back child support. I am the primary on the mortage and he is not listed on the mortage, if I do not put him on the deed, will I be able to claim the full 8000.00 credit?

No, married couples filing separate, as I recall, get $4,000 each. You can't double down. Doing so, would likely lead the IRS to flag your return. - ema

I sold my last home on June 8th, 2007. If I enter into a contract before April 30th, as the new credit law states, do I still qualify for the first time homebuyers credit as long as I close between June 8 and June 30th?

Have a friend that will be divorced before the end of the year. She is looking to buy a new house after the divorce is final. Her name was NOT on the deed to their home. I know she qualifies for the 6,500 credit, but do you believe she would qualify for the 8,000? I realize there is imputed ownership when you are married, but what about just after the divorce?

Your friend would not qualify for the $8,000 credit. She has had an ownership interest with her spouse in a house, so she's not a first-time homebuyer as defined by Congress. To qualify for the $6,500, she must contract to buy the house by the end of April, and close on that deal by the end of June. She also must have owned the other house for at least five years in a row. - ema

My fiance & I purchased a home May 2009. I had previously owned a home but he didn't. We are both on deed. If we got married Dec. 2009 would he still be eligible for $8000 tax credit?

Check the blog tomorrow, Dec. 1 at noon. We're having a live chat with an IRS official who will be answering questions. I'll submit yours. - eileen

Good afternoon,

If I used the credit to buy a home with my mother who is not a 1st time homebuyer do, but I am, DO I QUALIFY? My name is not on the won't be on the mortgage but it will be on the deed. All the money used to buy the home will be from me and it will be my primary residence.

You can't get the credit until after you buy the house. But otherwise, I don't see why you wouldn't qualify unless you don't meet the other credit criteria - ema

Hello,

My fiance bought a house 2 years ago and due to a family emergency, was forced to vacate it. The bank is in the process of foreclosing. We're like to buy a house before April 2010. We're getting married in January through the church (and signing wedding license the same day). If I hold off on sending my marriage license to the county clerks office, does the IRS base my marriage status as of the date the officiant filled out the certificate or the day it gets recorded? Due to my situation, am I better off having my wedding ceremony and doing the marriage paperwork at a later date to take advantage of the tax credit or will the IRS view me as married for the entire year and deny me the credit?

Your fiance, as you seem to know, won't qualify for the first-time homebuyer credit. If you marry her, you will not qualify, either, if you later bought a house. The tax professional I asked about this says the date when the marriage is recorded isn't the date of your marriage, it's the date you got married. - ema

Some years ago when my father bought his house, he added my name to the deed (not the mortgage). I'm planning to buy my first house in the next 30 days, will i qualify for the Tax Credit?

Join us for a live online chat Jan. 5th at noon on this blog. I'll pose your question the a tax professional who will answer it then. - ema

I bought my house three years ago and have lived there with my boyfriend ever since. If he buys the house from me, can he claim the tax credit? He is a first time home buyer. Thanks.

Visit the blog on Jan. 5 at noon where we are having a live chat with a tax professional. I will pose your question then. - ema

Mother and son are buying a house together to be their permanent residence. Mother is paying 50% in cash; son will make mortgage payments. Both names will be on the mortgage and the deed. Son is a first-time home-buyer. Will he qualify for the tax credit?

Please check this blog under the tax category. We have had similar questions before answered by the IRS and tax professionals. - ema

I wanted to know if my fiance qualified for the tax credit. I owned my home with my x-husband due to not being able to qualify to refinance on my own. So I refinanced the house in AUgust 2009, with adding my fiance as a new owner on the mortgage and deed. Would he qualify?

I'm submitting questions to the IRS and will include yours. check back on the blog later for answers. - ema

I would like to know if a person who is divorce and has a dependent, doesn't that person qualifies fro the first time home buyer? I thought I had read somewhere that if a divorce person with a dependent quailifies.

Sorry, I don't recall anything that says all people with dependents qualify. You must qualify under all the other requirements, such as limits on income and the timing of the purchase. I will forward your question to the IRS for an answer, so check the blog later. - ema

I married my husband in August 2007 which he owned the home. He lost the house and we have rented since. I have recently purchased a home ALL in my name, nothing has his name on it at all and we are planing on filing seperate. Will I qualify for the 8,000 first time home buyer?
Thank you

Sorry, no. I just got off the phone with a tax expert. Basically, even if one spouse's name isn't on the deed or mortgage, it doesn't matter. The IRS assumes both spouses own the house. Your husband, and thus you also, owned a house in the past three years so you will not qualify. - ema

I am wanting to buy a home in MO, and I would be purchasing from my parents. Obviously I am not elegible to recieve first time homebuyer credit since i'm buying from my parents, but I have never owned a home, and neither has my boyfriend. He is in debt from school lonas and doesn't have great credit built up. Could I cosign on a loan for him without being considered "related" to the sellers? Thank you!

I will forward your question to a tax expert.
But one thing you should be aware of. Co-signing is very serious business. If your boyfriend doesn't repay that loan, you will owe the money. School loans can be a good way to build credit history if you repay them on time. So it sounds like he must not repay them faithfully since his credit is bad. And who will own the house? Are you suggesting that you put yourself on the hook for a house you won't even have a claim on? Again, I'm not sure how the IRS will view your deal, but I will ask a tax expert. Check back on the blog for an answer. - ema

hi, we bought a new moduel on july 9 08, do we qualify for the current home credit
Thanks

Not sure what a "moduel" is. But the only credit available during that time is one that must be repaid. - ema