My wife and I separated in December and will be divorced in July 2009. We lived in her home for 20+ years and she is selling it now. I want to buy a condo for $85,000 (2br, 1-1/2 bath!) in August.

Since I have not owned a home during this period do I qualify for the First-Time Homebuyer Credit? May I refile the joint 2008 tax return or claim the credit on the 2009 return. The AGI limit for single may impact the 2009 return and credit amount.

During our marriage the mortgages were paid from a joint checking account.

It's not clear to me. You never owned a house, or did you own the house with your wife? - ema

if i was divorced in 2007 and never had my name on the mortgage and have not lived there for 2 1/2 years do I qualify as a first time home owner? i owned the land and he owned the mobile home bought in 2003 then he let the mortgage company repo it last month and i'm moving back and would like to buy a home to put on my property.

Let me check with the IRS. Look at the blog later this week for your answer - eileen

My husband purchased a house in 2004 prior to our marriage. He added me to the title only in 2005. I was not responsible for mortgage payments. We were divorced July of this year & I signed the title over to him. Am I eligible?

I believe the IRS has addressed this a few times. Check the taxes section of the blog - ema

I have just recently gotten divorced and am looking at trying to buy a home on my own. My husband and I owned the home together, although he was the only source of income for our family.

Am I eligable for the first time home buyer assistance, since I have never bought a house "on my own"?
thank

You won't be eligible for the $8,000 credit because you and your spouse could not have owned a house in the past three years, and it appears that together you did. - eileen

My husband and I divorced in 2001 after 27 years. In the divorce I received the house, and it has been in my name only since that time. in 2005 I remarried but never added new husband to deed. He hasn't owned a home since 2004. I sold my home and we recently purchased a home together. Do either of us qualify for the 2009 tax credit?

It doesn't look good. As we posted on the blog, this is what the IRS says:

Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer’s spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. You cannot take the credit even if you filed on a separate return.

My boyfriend bought a house with a friend 4 years ago. In October 2009, he will be taking his friend off the mortgage and the title and refinancing this house with me on the mortgage and title. I have never owned a house before. Do I still qualify for the credit?

I don't think so, but I'll check with the IRS. The house is already purchased, and you are just putting your name on a refinanced mortgage. The credit is for the purchase of a house, not refinancings. But I'll ask for you. - ema

Question: I am married. We live in a house that my wife purchased BEFORE we were married and my name is NOT on the mortgage. If we get divorced and I purchase a new house, can I still use the tax credit?

Are the two of you divorcing anyway or are you asking can you get the credit by divorcing? - ema

My (former) husband and I purchased our residence in 2003. We separated in 2006, divorced in 2007, and had the house on the market until it sold in June of 2007. I had to live in the house and pay all the mortgage payments until it sold because he never contributed any money after we separated. After renting for two years (and two moves, due to first landlord suffering a foreclosure!) I have finally scraped together a down payment for my own house - is there ANY way for me to qualify for a homebuyer credit? Is there any provision for "unforseen circumstances" such as a divorce?

Sorry. You can't have owned a house in the past three years, and that's not the situation in your case. - eileen

Sorry if this seems redundant but I haven't seen this question posed exactly the same as my situation. I am going through a divorce, I have never owned a home. My husband already owned a home before we were married and my name has never been on the mortgage or the deed ever. We are legally seperated and the divorce is pending, am I eligible for the tax credit on my first home purchase?

I seperated in 09/06, moved out lived in rented property, divorced in 10/07. May I consider it 3 years since I have lived in or owned a home or is 3 years from the actual dvorce that removed my name from the deed ( which it did)

I'll run you question by the IRS to double check. Check back on the blog later for your answer - ema.

Seems off, that if you purchased the home in 2009 it is a permanent credit (so long as you stay 36 months)vs 2008 with a 15 yr payback. The way I understand that is 7500/15 or 500 additional tax due each of the next 15 years, What if you loose everything and you do not even make 500 ?? I understand they forgive it if you die but, will they garnish your social security assuming you live long enough to reclaim their credit if you cannot repay it over the next 15 years due to no income???

Seems to be extremely stringent, kinda like when they created the child credit for children under 17 the year my daughter turned 17. Amazing her father quit paying the minor amount of support that he was paying (at least for part of the time)the day she turned 18 even though that was 8 months before she graduated from high school and when I did get support payments they did not cover the cost of my daughters health insurance yet I did did not qualify for the credit as my child was too old.

All right yopu got me started, I had been her sole support since age 7. Well at age 26 she was finally done with school. Thank God I was not waiting on a tax credit .
Now after getting her out of law school and married at age 27, I buy a house in Feb 2008 for the first time since losing my a#$ in 1985 in the last great real estate depression. I have not had ownership of a home since 1989 due to "scared to death " and the fact that my deed in lieu of foreclosure screwed up my credit for the next nine years. FYI, I paid every dime due on that original mortgage. Unfornately I had "first time home buyers guaranteed bond money" backing up my originally in (1985) below market mortgage rate of only 12%, and they would not refinance after my divorce when rates dropped to 7% in 1989 because I could not "qualify to pay less" on my sole income as single Mom with at that point 100% of the finacial responsibility of my daughter. So they forced me to continue to pay the full amount of the the riduculous mortgage( because they had nothing to lose, if I did not pay the US govt would so they were not such dumb business men) until I threw up my hands and walked away. Great gesture, I paid for it plus. I guess my point is that the government has never done anything favorable for me when it comes to home ownership. So I guess I am lucky that they are not doing anything for me now so I cannot be disappointed in their program. Although it does floor me that the rich and famous are walking away from their mortgages for their second & third homes or yachts etc and are even being given non taxable treatment of their debt forgiveness.
I, who at the time was a 27 (1989) year old single Mom with a seven year old did not get any relief from the government on the mortgage or the tax liability. I could not even write off my 47,000 loss on the home I had to pay.
That would be $47K CASH. More than I had had ever made in a year at that point in my life. At least if they had allowed a capital loss I could have used it by now at $3K a year.

For those of you who are eliglible, BEWARE, there may be a downside that you are not currently considering. If not, consider yourself one of the lucky ones!! :) I have no resentments! :)

My wife was given partial ownership of a home of which her mother currently lives in along with my wife and I. My wife's share of the home on title is less than 30%, and we did not know until recently that her mother had distributed the title of the home amongst the children. We are looking at moving out and buying a new home in the next month. Anyway we can qualify? I heard there was a rule that if ownership interest is less than a certain percentage there was a chance.

Hmmm. I haven't heard about an ownership percentage clause on the credit, but I'll run your question by the IRS and see what they. Check back later on the blog for the answer - eileen

I was married 5 years ago my husband refinanced and added my name to the house deed. Does this make it half my house?

We try to help people with their tax questions on the first-time homebuyer credit - not give legal advice. Your best bet is to look at the documents and talk to your husband. - ema

Hello,
I believe I already know the answer to this question based on what I have read on this site. My ex-wife purchased a house 2 years before we were married. We lived as a married couple for 10 years until early this year when we were divorced. I did receive equity from her because she wanted to keep the house. This was because I had vested interest in the home even though I was not the original purchaser. I would assume that I am not eligible for the credit because I do not fall within the 3 year period. Please confirm my assumption.

Thanks for your time and advise.

I'll forward this to the IRS, but I think your inkling may be right. - ema

We were married in 2005, he had already had the house for 20 years, separated in 2008, legal separation in 2009 and I am now purchasing a home. Am I eligible for the tax credit?

Check back on the blog. I'll foward your question to the IRS. - ema

If a person was not on the title, deed or mortgage of a home he or she occupied with their spouse within the last three years and filed joint tax returns and are now divorced.
Does the spouse that was not on title, deed or mortgage qualify for the tax credit?

Check back on the blog later for the answer. I'll forward your question to the IRS. - eileen

I separated from my husband earlier this year but we filed taxes jointly as a married couple in 2008. I wish to buy a condo/finance the mortgage in my name only but apply the tax credit to our jointly-filed 2008 taxes. Is this possible? My income is too high to qualify for the tax credit as an individual.

Check back on the blog later. I will forward your question to the IRS. - eileen

My daughter and her husband purchased a house for the first time for both in 2009. They are now separated. Can she file "Married Filing Separately" and claim half the tax credit on her taxes?

I believe so, but I'll run it by the IRS. Check back on the blog later. - ema

My husband and I brought a house about 9 years ago, but didn't purchase a mortgage. The house was small so we get a small loan and purchased it. We are thinking about building a house. Would we gualify for first time home owner?

I don't think so. The tax break doesn't care how you paid for the house, but whether you owned one. I will run this by the IRS along with some other questions, but I wouldn't run out buying a second house just yet. - eileen

I got divorced in Oct 2007 and signed over a quit claim deed taking my name off the marital home. I lived in the marital home until Oct 2007. I have never bought a home by myself. Do I qualify for the tax credit, or for ANY kind of credit if I buy a house this year? I seem to be missing all the stimulus opportunities.

If you signed a quit claim deed, you owned a home. Isn't that right? You can't have owned a home in the past three years to get the credit.

I was currently married for a number of years in the state of pa. I filed for divorce back in 2004 and we still have not complted it. During that time, my spouse had moved out from where we were living and we sold the house. I had purchased another home just in my name alone. I'm now trying to refinance the property to lower my payment and add my escrow. The mortgage company is saying i need to show them the divorce decree, but the divorce is not final. Why would they need to see that? My spouse was not on the mortgage. loan, deed, or has anything to do with the property. What can i show them that they will except in place of the decree. Or is there some type of law against that or is it even legal for them to do that ? I could understand if she was on the home or mortgage with me. Or even if she was living there as her marital residence. But that is not the case. Please help, anyone.. thanks

I'm just guessing here, but the mortgage company probably wants to see the decree because it may show if you two worked out an agreement on who assumes the mortgage debt or that your wife is cleared of any responsibility. You need to work with your mortgage company and ask what sort of documentation it can accept. And if you don't understand why they are asking for the information, again, you should be talking to the company. - ema

I married my husband in 2006 and live in Florida. We live in a home he purchased with his ex-wife which still has his ex-wife's name and "et al" (he says he's the "et al") on the title. She has not lived in the home or paid taxes on it since 1994 (they bought it in 1980). He has been paying the taxes and making major improvements on the property since she moved out. In the last three years, I have also contributed a good amount of money and time in improving this house. My husband's will states he leaves the house to me but, obviously, that's not what will happen. But what are my rights as far as being able to live in the house and regarding my investment in the house if my husband dies before me?

Sorry, this blog is answering questions on the first-time homebuyer credit. You need to take your question to an estate planning lawyer in Florida. Each state has its own estate laws, and we're here in Maryland. Don't know the law in Florida. Good luck. -ema

My case sounds very similiar to many others regarding being married and my name added to the deed. The purchase date was 11/6/06, and we no longer are together nor do we own the home any longer. I had my name removed last year and now I'm set to close on my own home. Would it be in my favor to wait 3 years to the day before I close to be eligible for the tax credit. I'm set to close 11/7/09.
Thanks

You owned a house a year ago. You cannot have had an ownership interest in a house in the past three year. - ema

My ex and I built a house in 1998. We seperated and he remained in the house in 06/2006. I and the children lived in my parents house until 06/2009. I actually purchased the house with a loan in my name only in 03/2009. The kids and I did not move back into the house and use it as our primary residence until June 2009. Do I qualify for the tax credit?

Shannan, I think we will have to start referring people to the IRS directly at 800-829-1040. We've been sending the IRS questions, but we still have a questions pending that haven't been answered yet. Good luck, ema

I got a divorce about 3 to 4 years ago. I gave him the house in the divorce but he never got it refinanced in his name. I calledc the mortgage compnay and they said I am still liable. He died today and now this will be tied up in his estate. Will I still be liable or can I go take control of the house. I don't want this to go bad on my credit. Do I need a lawyer if this house is in now my posession even though it stated in the divorce papers to be his?

Sorry, you really need to contact the lawyer for the estate on these questions or your own lawyer. Good luck, ema

I'm a realtor and I'm not sure how to advise my client. She has been divorced for 2 years. At the time of the divorce, she kept the house and took title and a new mortgage in her name alone. She had title and mortgage with the ex for 4 years before the divorce. Does her situation qualify her as a homeowner that has owned this home for 6 full years and can therefore take the $6,500 credit if she sells and buys something else? (assuming she meets all the other guidelines) I'm thinking yes, but want a second opinion. Thanks!

Check back on Tuesday. We are running some Q&As on the extended credit then. - eileen

My ex-husband and I sold our home in March of 2007. We were legalley separated in Jan 2008 and our divorce was finalized in June 2009. I am now purchasing a home which should close escrow Dec 1st. So it has only been 2 years and 9 months since we sold our home. Is there any exception to the 3 year clause in the new legislation for a recent divorce?

Sorry, no. - ema

my husband and i bought a house from his mother in may 2009. i know you don't qualify if you buy from a relative. I've heard there was a loophole where if we filed seperate i could qualify due to the fact that i am not related to her by blood. the new extension put a clause to prevent this from happening. is this true.

I don't think you will qualify because you bought from a parent. I'm curious, where did you hear there was this loophole? I don't believe there was such a loophole, plus the updated legislation doesn't mention this. Although the new law does require verification of housing purchase and prohibits parents from putting a baby's name on the deed to dlaim the credit because of fraud concerns. - ema.

I purchased a home with my wife in 1993. It was paid off in 2000. In March 2009 we seperated and the divorce is final in November. I gave her the home in the divorce proceedings. Filing a quit clain in September. I purchased home which closed on October 30th . Am I eligable for the credit ? I should be !

I don't think so because you had an ownership interest in a house in the past three years. Check the taxes category of this blog. I think it's been answered before by the irs. - ema

I WAS DIVORCED IN APRIL 2006. IN THE DIVORCE I RECIEVED THE HOME. IT WAS REFINANCED IN MY NAME ONLY. WILL I BE ELIGABLE FOR THE TAX CREDIT?

As I understand your situation, you have owned a home since 2006. You are not eligible as a first-time home buyer credit. You also don't make a mention of buying a new principle residence so I don't see how you can qualify for even the expanded credit. - ema

I understand that there is a "displaced homemaker" clause, or that as a recently divorced, first time buyer, since my ex-husband owned the home before we married, and my daughter and I moved out and purchased a new home, that I would qualify. This info is according to something I read on the HUD.gov site. Please advise if my interpretation is correct.

The HUD program is talking about other federal programs, such as foreclosure assistance for first-time homebuyers. For the tax credit, go to the IRS site at www.irs.gov. - ema

me and my boyfriend(now my husband)purchased a home in may of 09,he was divorced in march 0f 06 from his 1st wife, she received the home in the divorce and he also quit claim deeded the house to her,he has not lived in the house since Jan of 06, we purchased the house in may of 09, 3 years and 2 months after the fact, would he qualify for the $8,000 tax credit?e \

If he hasn't had an ownership interest in a house for three years, he woudl qualify. - ema

My husband was divorced Jan. 2008 and bought a home the end of Dec. 2008. We were married Sept. 2009 I've not owned a home since 2004 would we qualify for the homebuyer 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

We sell our house to Joe in 2009, and he qualifies for the first-time home buyer's credit. If Joe decides to marry our daughter in 2010 or thereafter, will the IRS consider the 2009 transaction as a sale to a relative? Thank you.

I'm forwarding questions to tax pros about the credit, I'll forward yours. check back on the blog sometime for the answer. - ema

My father had bought a mobile home approx 10 years ago with his wife. Both names on the deed. They split up approx 4 years ago and he moved out. She still lives there now and the property has been up for sale. He has been living in apartments since then. Is it possible for him to get the credit? And also is it possible for him to get it if my name is on the mortgage with his (his son) as I bought a house within 2 years?

It would seem your father would be eligible if he buys a house before the deadline, meets the income requirements and lived in the mobile home for five consecutive years. I'll run it by a tax pro to double check. Check back on the site later. - ema

I owned a home for several yrs. It was destroyed by tornado in June of 2008. I had to buy another home in Nov. 2008. Do I qualify for First Time Home buyer, since previous home was destroyed?

I've seen nothing that suggests that. - ema

My wife and I bought a home in October 2009, but only her name appears on the mortgage. We are both on title. She now wants a divorce and wants me to keep the house. The divorce won't be final until after year end 2009, so we will be filing our 2009 tax return together. If we claim the $8,000 credit, will we be able to keep it even though she will no longer live in the house? We were both 1st time homebuyers.

I believe you would be able to keep it, and then figure out how to divide it on your own. But on Jan. 5th, I'm planning on holding a live chat with a tax professional about the first-time homebuyer credit and other tax questions. I will submit yours then, or you can attend the live chat at the blog on noon, Jan. 5th, and ask your question yourself. If you can't make the chat, visit the blog later and you can replay it. - cheers, eileen

My wife and I got married in August of 2009. In 2008, she bought a home and only her name is on the title and the mortgage. Since we got married, we have not added my name to the title. She filed for divorce in December and the divorce will not be final until February 2010. Will I be eligible for the first time home buyer tax credit if I have a signed Purchase Agreement by April of 2010?

You or your spouse can't have owned a house in the past three years to be eligible for the first-time homebuyer credit. I'm not sure you meet that criteria. Have you checked the other Q&As on this blog? Go to the category of taxes. This may have been answered before. But I will save this question and submit it to a tax professional during a live chat on noon on Jan. 5th. - ema

My husband and I purchased a home in March of 2009. We have since filed for divorce and i will be assuming the loan once he files a quit claim. Will we still qualify for the $8000 home buyers credit?

Assuming you two met the other conditions, I don't see why not. But we are holding a live chat on the homebuyer credit and other tax issues on Jan. 5, on this blog at noon. I will forward your question to the tax professional, who will answer it then. Check out the live chat or check the blog later t o replay it. - ema

My ex wife and I separated in August 2005. Because she did not qualify for a loan, I bought her a house. We were both on the deed and the mortgage. We were officially divorced in December 2005. I paid her child support and our divorce agreement allowed me to take the mortgage interest deduction so long as my name was on the deed. Earlier this year, she refinanced the house into her name and my name was taken off the deed and the mortgage. I have rented since August 2005 and am ready to buy a new home, do I qualify for the first time homebuyer credit? I never lived in the house I bought for my ex wife, so I don't think it was my primary residence.

I'm not sure you would qualify, because you had an ownership interest in the house plus you were taking a tax deduction because of that. We are holding a live chat on the credit and other tax issues on Jan. 5 at noon on this blog. I will pose this question to the tax professional and you can join us then to see the answer or check back later. - ema

I am a previous home owner, but was divorced in June of 2006 - and have not lived in that home since. I remarried in April of 2008, and my new wife purchased a house only in her name in Feb of 2009...will she be able to claim the tax credit?

You cannot have owned a house in the previous three years before buying a new one. Both spouses must qualify to get the credit. Did you have an ownership interest in a house three years before your new wife bought a house? That's your answer. - ema

Man and Woman married in ll/04. The Husband sold a home in 02, never was on the Deed/mortgage of the home he lived in with the woman he married 11/04.
He is now legally separated, scheduled to be divorced in June 2010. From my understanding, he does not qualify for the 8,000 but would he qualify for the 6,500 being that he is connected to the house and was married to his wife for 5 years?

Also, if he is under contract before 4/30/2010, gets divorced finalized in 6/2010 yet closes on the home by 6/30/2010, how would he qualify?

hmmmm details details...thank you.

I will submit your question to a tax professional who is answering questions during a live chat on the blog, starting at noon on Jan. 5. Tune in to see the answer or you can replay the chat later. - ema

Husband bought home 4 years ago before we were married. My name is not on the mortgage or the deed. We married in Oct 2006. We separated in March of 2006 and I moved out. I have never purchased a home or contributed to payment on the mortgage of the home in my husbands home. Can I qualify for the First Time Home owner's loan?

I will pose your question to a tax professional during a live chat on this blog at noon, Jan. 5th. You can view the answer then. - ema

My wife (@ the time) and I purchased a house in 11/07. We got divorced in 9/09. She was awarded the home, but she has not refinanced the home, so my name is still on the mortgage. If I buy a home, am I eligible for the credit: first time buyer or move-up?

I'm not sure it looks good. You can't have have had an ownership interest in a house in the previous three years to get the first-time homebuyer credit. You seemed to have owned a house in the past three years. To get the $6,500 credit, you must have lived in your old house for five consecutive years sometime in the previous 8 years. You bought a house in 2007 and haven't lived there for five years yet. You might want to doublecheck the IRS site at www.irs.gov, which runs through different scenarios. - ema

My boyfriend refinanced his home earlier this year and he added me to his house. Am I eligible for the first time home buyer credit?

No, you didn't buy a house. A mortgage was refinanced. - ema

My husband legally seperated from his ex-wife in August of 2006 and moved out of the home that both of their names were on several months prior (we have leagal documentation on this). He and his ex divorced in Jan of 2007 and he quitclaimed deeded the house over to her and the house has been only in her name ever since. My husband and I married in June of 2008 and bought a house in March of 2009. I have never owned a home before. My question is will my husbands ex situation prevent us from qualifying for the first time home buyer credit?

Check this blog on Tuesday, Jan. 5th at noon, for a live chat on the homebuyer credit with a tax professional. I'll pose your question to him. - ema

I lived in a house I bought with my ex-wife until Feburary of 2006. I divorded in 2007 and quitclaim deeded the house to my wife. I have since then re-married and purchased a home in March 2009. I claimed mortgage interest on my 2006 taxes on the prior home because I lived there a few months of that year and also because my ex-wife didn't work and have any income to report to file taxes. Technically I have not lived in my old principal residence for 3 years before buying my new home. Will we still qualify? Can I prove that I was only in the home for the first few months of 2006? I do have divorce papers that state the date I moved out of the house in 2006 although we weren't divorded yet. My new wife is a first time home buyer and the main owner of our new home. I don't want to cheat her of this credit when we are so close to being able to qualify.

It sounds like you had an ownership interest in a house within two years before you bought your other one. Not sure you would qualify, but on Tuesday, Jan. 5, at noon we are holding a live chat on this blog with a tax professional who will be able to answer this question. I'll pose your question and you can check the blog then or replay the live chat later. - ema

I am still legally married and purchased a home in April of 2009. The mortgage and the deed are in my name only. We are finalizing our divorce this month. Will he still be able to get some of the first time home buyer tax credit since we are still legally married? I will be filing my taxes seperate this month.

Please check the blog under thet tax category. This has been answered. Both spouses must qualify, even if you are separated. - ema

Well, the first question up top may answer, but I just need clarification. My wife and I divorced in 2004. She quick claimed the deed to me. She has not lived in the house since 2004, has not paid any mortgage payments, has not claimed any tax benifits on the interest. Has not had anything to do with the house except her name is still on the bank loan and she is listed on the 1098, but like I said, has not taken any tax benifits.
Can she qualify?
Thank you for any help.
Jim

Yes, the first question does seem to answer your question. I don't understand why your situation is different? - ema

My son and his girlfriend have lived togher in his house for 1 year. Can he sell his house to her (she is a first time home buyer) and still live there together and get the tax credit?

Pleasae see this week's live chat on this blog, Jan. 5. I believe a similar question was asked. ema

My husband and I are going through a divorce. My ex husband bought a house January 2007. My name is not on the mortgage. I have been living with my son for the past 6 months. I want to buy a house now that I am divorced. Do I qualify for the credit since I have never had a morgage in my name and I am now divorced?

Hi, whether your name is on the mortgage or not doesn't matter. We have had lots of questions similar to yours. Please check the blog under the tax category. Plus, check the Live Chat for Jan. 5, which answered many questions about divorce and the credit. - ema

My wife and I purchased a manufactured home in July of 2005 in Florida. We own the house but pay a monthly lot rent for the land. Do we qualify for the $8000 tax credit if we wanted to move and buy a regular house? I know there have been similar questions but I haven't seen this circumstance addressed. Thanks!

You don't indicate whether this is your principal residence. If it is, I'm doubtful you could claim another purchase of a house for the credit. But to be sure, please check the IRS site at www.irs.gov for situations involving mobile homes. - eam

I have been divorced since Sept of 2001. The home was quitclaimed to me then. The mortgage was in my ex's name only. I was able to finance the home in my name in August of 2009. Do I qualify for the first time home buyers tax credit?

Sorry, no. You just refinanced the mortgage, you didn't buy a new house. - ema

All these divorce questions. My question is that my husband died in November of 2009. I was not on the mortgage or deed. However, I am obligated to purchase the home from his estate to keep it. Am I considered a first time home buyer in this case?

Hmmm. This is a new one. But the IRS says on its Web site you cannot buy a house from a spouse to be a first-time homebuyer. Though you are buying it from the estate, I'm not hopeful the IRS would consider that OK for the credit. You can doublecheck by calling the IRS at 800-829-8000 or go online

Divorce/Tax Credit Qualification?
I live in Maryland and have been renting since 10/1/06. However, my name was on a marital home purchased jointly with my ex-husband. I have not lived in nor paid any part of the mortgage since that time. Will I qualify for the 1st time homeowner tax credit if I purchase a home in 2010? Additional information:
Moved out of marital home 10/1/06
voluntary separation and property transfer signed 12/07
divorce official 4/08
Was not officially taken off the mortgage by the mortgage company until 7/09 when my ex-husband refinanced.
filed taxes jointly with ex husband for 2006 and 2007
filed separately for 2008
Thank You, MC

I'm forwarding questions to the IRS, and will submit yours. Check back on the blog later for an anwer - ema

I havent heard this exactly like this: I bought a house from my mother in law. My wife hardly makes any money and it is very clear that I am the one buying the home. Sale is at full price. Can I file it anyhow and see what happens?

Both spouses must qualify and I don't think your wife can buy a house from her mother. But I will submit your question to the IRS and see what it says. Check back on the blog later. - ema

I have been married 26 years, but seperated for almost 5 years. My husband has been renting a condo.
I have continued to pay the taxes and make improvements on the house. I understand that he is entitled to 50/50. I would like to invest in other properties, will he be eligible to claim 50% of anything I earn, purchase or invest in since we are not yet formally divorced?

Sorry, that's not a tax question. You need to talk to a lawyer about your situation. Good luck, ema

My wife and I bought a home together 10 years ago. Both of our names are on the deed and we have lived in the house together the whole time. We are now getting legally separated and are selling the house. Can we both buy a new home and both get the tax credit since we were both home owners.

Let me run this by the IRS. Check the blog later. - ema

I was divorced & seperated legally in 2009. I left my ex 3 years ago and purchased a house in May of 2009. My name was on the previous house with my ex. She was awarded the house upon mutual agreement and through the legal process. Do I qualify for the first time tax credit? I have nothing to prove I left as I maintained my mailing address at my previous house.

I'll forwarded your question along with others to the IRS. Check back on the blog later. - ema

Hi,

Unique situation here, and IRS site isn't very clear on it. My wife and i bought a home in 2000, and we both lived in it until last year, (so the 5 of 8 rule is satisified) when we separated. We have been filing our taxes as Married filing jointly, but could file as Married filing separately if it would help here. She will be living there for the rest of her life. I just purchased a home for myself to live in on 12/18/09 (tired of renting), and am wondering if I can claim the Long Time home buyer credit since I will be living in this residence. I noticed that if we file separately, I claim 1/2 of the $6500, and she would be able to claim the other half. But what if she decided not to since she wouldn't be living here?

I forwarded some questions to the IRS, with situations similar to yours.It sounds like you two are not divorced yet, and I'm not sure if both of you since you're still married have to qualify for the credit to get it. I will pass your question along to the IRS, although you might check back earlier to see if the IRS answered a similar question already. - ema

Divorced this year. My ex has the homes out of our divorce. My name was never on a title nor on a mortgage. I didnt have to sign anything over, it was always his. I had no way of controlling the estates. Would I qualify for first time homebuyer, If I purchased a home this year before the deadline?

I read alot! Just didnt see any solid answers on people who were divorced that had nada in their name to begin with and ended up with nothing in their name in the end even if their ex spouse did. I keep seeing people who actually had something or got something out of their divorce. I dont fit in that catagory.

Thanks for any validation!

I sent along some similar questions to the IRS, but there's no telling when we'll hear back. So you can keep checking the blog. Please also check the blog's jan. 5th live chat, which answered a lot of questions. I also spoke with a tax expert yesterday, and he said that if it isn't obvious that you deserve the credit, you probably don't. - ema

I bought a home with my wife on May 2009 caught first time buyer credit now getting divoced. she getting the home. Due I have to pay back the credit?

I believe the credit only has to be repaid if you sell the house within three years. - ema

Hello, I really hope you can help shed some light on my situation. I was married summer of 2007. In October of 2008 my husband filed for divorce. He owned his own home, solely in his own name, since 1998 (before I ever even knew him). My name was never on it in any way.

We were granted a judgement of Separate Maintenance (legal separation) in April 2009, instead of divorcing right then, only for the purpose of extending his medical insurance for me since I had been diagnosed with a pituitary tumor. We were living separately and I purchased my first home in July 2009, completely on my own (we had never shared any money, bank accounts, property, etc.). The divorce filing is still in progress. Am I eligible for the first-time home-buyer credit?

While IRS section 36(c) (1) states that I can not have "ownership interest", I live in an equitable distribution state (Not a community property state) and the term of marriage was so short that I legally would not have had any claim to property anyways. Also, it states on an attorney's blog in reference to that section, that each spouse would only have an equitable interest to any property "acquired during the marriage". Which did not happen. I had seen a similar question up there but did not see a response to it. Any help would be very appreciated.

Thank you.

I talked to tax experts who say basically if a spouse owned a house, the IRS imputes ownership interest to the other spouse. - ema

I divorced last year (2009). Husband's name only on the house, not mine... Since I am divorced and never was on the house deed or loan, do I get the tax credit for buying a mobile home in 2009?

We've gotten a lot of questions similar to this. But the tax experts say it doesn't matter if your name is on the deed or not. They say that if your spouse owned a house, then the conclusion is that you owned a house, too. You can try calling the IRS at 800-829-1040 to verify that. - ema

I just got divorced after 2 years of marriage. I have not owned a home but my exhusband did. Do I qualify for the first time home buyers tax credit?

Please check the blog under taxes. I think this has been addressed several times. - ema

Hello,
My question is very similar to the individual's that was answered at the top of the page, bar some minor discrepencies which I would like to clear up. My ex husband and I purchased a home together back in 2004. We got divorced in February of 2006. He got to keep the house and I walked away. My new husband and I bought a home together which closed in June of 2009. The time from the divorce to the new home closing is greater than 3 years, however post divorce, he took months to have my name taken off the house. It was not removed until august of 2006 which puts my time table at more like 2 years and 10.5 months. I read in a few different places you will still qualify if the home was not your primary place of residence for greater than 3 years. I have not lived with him since a few months prior to the divorce even. Does this mean I qualify or does the fact he took his time taking me off the home mean im screwed? If we do qualify, are the divorce papers what will be required to be included? Thank you!!

Forwarding your question to a tax pro. Check back later for an answeer - ema

This is my friend's question...
Ray's wife died in March 2009, they had been married for 4 years, but had lived together for 15 years in HER condo. He was never put on the deed, and the condo was willed to his wife's son. Now, Ray wants to buy a house in March 2010; can he receive the $8000 new home buyer's credit? (He'll be filing a married-joint tax return for 2009.) Or would he be eligible for the long-time owner's credit?

Running your question by a tax pro. Check back on the blog later for the answer. - ema

My husband and I are in the process of divorce. We sold the marital home (we lived in 6 years) and I purchased a new home,both on 12-11-09. Should I file 2009 taxes as married filing jointly or separately to get the largest home rebate? If my husband purchases a home prior to the deadline in 2010 and our divorce is completed this year, will he be able to get a $6500. refund for himself when he files next year?

Running your question by a tax pro. Check back on the blog later. ema

Thank you for all the information. My question is very similar to the divorce/separation questions above, but I'm still not clear on a couple of fine points. I separated in 2005 and left the family home physically and permanently at that time. Divorce final in 2006, with house for sale. In 2007 he decided to keep the house, but did not refinance. I last claimed the home on taxes (took half the benefit) in 2007 year taxes). My name still remains on the mortgage. So, my question is primarily related to the definition of "ownership". Since I have not lived in the house since 2005, I think I'm a non-owner for over 3 years. But since I claimed on taxes for TY2007, I might still be an owner. I'm considering buying a house to take advantage of the tax benefit, but will hold off until next year if I don't qualify. Any assistance is appreciated!!! I've checked out the all the posts here and the scenarios provided on the IRS site, but can't seem to find an answer!

running your question by a tax pro. check back on the blog later. ema

I have been divorced for many years. I have two children that I was ordered by the State of Arizona to pay child-support to. They are now of age and I am now only paying on a child-support arrearage amount.
The IRS allows for the Arizona Department of Economic Security/Child Support Enforcement Division to 'seize' any Federal or State income tax refunds to apply toward the balance of this arrearage.
I just qualified for my very first home loan at 51 years of age and I am looking forward to the 'First Time Home Buyer Tax Credit' of $8000 but I am concerned that it too, will be seized and applied toward the child-support arrearage amount.
Are my concerns valid or will I be buying some long-awaited new furniture with that tax credit?

Running your questin by a tax pro. Check back on the blog for an answer later - ema

So far I have not seen this question addressed. I have read all the IRS releases.

My spouse and I have not lived together since 2008, and are in the process of getting a divorce, filed in early 2009, should be final in 2010.

Neither my spouse nor I have ever owned property, so I will be a first time homebuyer. I have not yet entered into contract, but I plan to buy a house before the deadline. I would llike to claim the credit for 2009 taxes. I will be filing in 2009 as head of household rather than married filing separately, because I meet the "considered unmarried" criteria.

Am I eligible for the $8000 credit with this filing status, or would I only be eligible for $4000 because I was still legally married at the end of 2009?

(My soon to be ex-spouse is not buying any property.) I understand that I could wait and file for the credit on 2010 taxes as I will be officially single by the end of the year, but I would like to get the credit in 2009 so that I can do needed repairs on the house.

Forwarding your question to a tax pro. Check back on the blog for the answer. ema

I wish the press would write about this and let people know...the H&R Block I went to yesterday was a madhouse...nobody knows much abou tthe marriage penalty and the 3 year rules. I'ts not widely talked about and it's getting exes pissed at each other. I'm separated from my wife for 6 years but she bought her own house 5 years ago, I still have the original house...we can't get the credit for her when the realtor told her she would. The realtors need to be told this too.

"They say that if your spouse owned a house, then the conclusion is that you owned a house, too. You can try calling the IRS at 800-829-1040 to verify that. - ema"

They don't cover that. Trust me.

didn't see this exact scenario so I have to ask.
Bought a house with 1st husband Jun03, he leaves in Sept 06, we get divorced April 07, kept both names on the house and I continue to occupy. 1st Husband buys himself new house in Feb 09. I marry 2nd husband (non-homeowner) April 09, sell house with 1st husband Jun 09, buy new house with new husband Sept09.
Do we qualify for either credit?

You would not qualify for the first-time homebuyer. Please check our blog on the $6,500 credit which states that both spouses must meet the criteria to get the credit. - ema

I divorced in 2009, home in both names for 8 years. Quit claim deed and refinanced house in my name last year do I qualify for the credit?

No, the credit is for someone buying a new house to spur the real estate market. Refinancing a home you already owned doesn't quality. - ema

Some on this blog may find this helpful.
I called the IRS last week about divorce and the tax credit. The question I posed to them was very similar to many on this blog. Here is a rundown. Spouse purchased home in 1996 only in spouse's name. We married in 2000. I moved into the house and lived there until the divorce was final in Feb 2010. My name was never added to the title or mortgage. In the settlement I claimed no interest in the home and was granted none. I asked if I would qualify for the credit based on my situation as described
The answer that I received was that I would qualify for the first time buyer credit if I purchased a home after the divorce was final. The person I spoke to also advised that you should be able to backup what you are claiming by having a copy of the deed showing no ownership and a copy of the mortgage showing no obligation. I did bring up the "imputs ownership" issue and the IRS employee again said that once the divorce was final I would qualify as long as I had no ownership interest of any kind and can backup the claim. I plan on calling back and speaking a different person to verify since his answer goes against a lot of what I have read on blogs.

My exhusband and I bought a house while we were still married in 2007. We seperated right after we bought it and I never lived in it. We divorced in March of 2008. He refinanced the home last year and took my name off of it. I am now remarried and my husband and I are purchasing a new home. Do we qualify for the credit since I never lived in the previous home?

Check the blog at noon, April 9th, when we have a tax pro answering questions during a live chat. I will forward yours to him. eileen.

We were married in 99 purchased a mobile home in 2000, lost it in 2007. Bought a new primanry residence in Dec 30, 2004 divorced January 30, 2009 and he kept the home but the quit claim was not signed until late May 2009 when he finally refinanced the property in his name only. I bought my new home Dec. 31, 2009. Do I qualify as a first time homebuyer for the $6500 tax credit?

Home sale tax question. I have been divorced for 9 years. Refinanced and got the mortgage in my name in 2003. Loan was for $260,000. Original purchase price in 1991 was around $100,000. Sold home in 2009 for $485,000. Am I resonsible for the "profit" based on the original price or the refinanced to my name only price?

Not sure. But you can find out the answer to your question at noon, April 9th. We're having a live chat on the blog with a tax professional, and I'll forward your question. - eileen