Does it have to be a new primary residence to get the 6500 credit or can it be a refinance on your existing primary home

Yes, Frank, you have to be buying a new-to-you primary residence to get the home buyer tax credit.

If you purchased your home in 2007 but just signed new modified mortgage with your bank in 2009 would that qualify for tax credit of 6,500.

This is infuriating to me. It really is typical for our government. Eliminating anyone who's gotten married in the last 5 years. Way to NOT encourage newlyweds (those who are likely to be looking to move into a new house) to move.

Has the IRS ruled on this one?: Married couple divorces in early 2009. Husband had bought marital residence before couple had married. Wife buys house before divorce is finalized and moves in hoping to get the "first time home buyers" tax credit. Is she out of luck?

Maria, see my answer to Frank above.

Mike, I'm wondering if this was a Congressional "oops." Keep in mind that legislators didn't really create two credits so much as alter the first-timer credit to say that, for the purposes of this law, you're a first-timer eligible for $6,500 if you meet the five years out of eight rules. So the eligibility language was the same.

Michael, the IRS answered a similar question about separated spouses this way: "The purchase date determines whether a taxpayer is a first-time homebuyer. Since the husband had ownership interest in a principal residence within the prior three years, and the taxpayers were legally married, neither taxpayer may take the first-time homebuyer credit."

This is so silly. So basically, anybody who's been married between 0-5 years is automatically disqualified for any credit, regardless of ownership history. But you can get the credit if you're either not married or married for 5 years+. So stupid but typical for our government to tie this legislation to something totally unrelated to it's intent and purpose.

It seems like the credit should be attached to the person, not to a couple. It looks like Albert's wife is being penalized for marrying him (a previous homeowner) by losing her first-time-buyer credit. That's in addition to having a higher overall tax rate if they both have decent jobs... ouch.

Can you comment on my situation. My divorce finalized in June 2009 with my ex wife receiving our marital residence in the divorce. We lived in the home for 15 years as a couple.

Do I qualify for any tax credit if I purchase a new residence?

Thanks in advance.

Just called IRS. Was told that there had not been a ruling on this and a ruling should be made within a few weeks. I can give you the IRS person's name and ID, if you'd like to verify,

Robert, it sounds like you qualify. (Assuming your income is under the limit and you buy within the specified window of time.)

Gust, please do -- send it to jamie.smith.hopkins(at)baltsun.com. We're getting our information from IRS spokesman Jim Dupree.

Is there any hope that government changes the law and qualify the couple for either of the credits if one of them meets it?? It's just really hard to know that I could qualify for first time home buyer and my husband for repeat buyer but we can't get any money back because we are married :(

I bought a house from a previous owner and he owner-financed the home in December of 1994. I remarried in June of 1995. The house remained in my previous married name even though I remarried in 1995 and we finally paid it off in 2008. It was a 15 year loan. We purchased a new home together in Feb. 2009. We still own the old house and one of our kids lives in it. I was wondering if we qualify for the repeat tax credit of $6500.00. Each year in the past we claimed the yearly interest paid in on the old house along with property insurance and property taxes on our income taxes under mine and my husbands name.

I am from Michigan. I am presently married. I want to get a divorce and buy a home of my own. Does anyone know when the best time to buy would be? Before end of year or does it matter. Do I have to be divorced to get the credit? I want out of this marriage and would like to get out as reasonable as I can.

Susan, you'll need to sign a contract for a home by April 30 and close by June 30 if you want the credit.

If neither you nor your husband owns a home, then you could get the first-time home buyer credit of up to $8,000. If you and your husband have owned a primary residence for five consecutive years of the last eight, then you can get the $6,500 credit for repeat buyers. (The previous home doesn't have to be sold.)

I spent a great deal of time on the IRS website to verify the info on this blog as well as the article in the Baltimore Sun. When I could not find the info I called the IRS, the gentleman I spoke to said that the IRS had not weighed in on this matter and should have a decision within a few weeks. He also said he did not know what source the Baltimore Sun had gotten their information from.

My husband and I are in a very similar situation to others on here. We got married in October and we are purchasing a home together. He is a repeat buyer and I am a first time buyer. It does seem insane that we would cancel each other out and not qualify for either credit!

Nikole, we're getting our information from IRS spokesman Jim Dupree, who has never steered us wrong before. He talked to columnist Eileen Ambrose, but both of us asked him for guidance on this subject for weeks before he offered an answer, so it was not given off the cuff.

Why is it that the $6,500 credit is not in the same time frame as the $8,000 tax credit. It does not make sense to me. I sold my home that I lived in for 20 years July 2009 and bought another July 2009. Now I find out I could only qualify for the $6,500 credit if I purchased after 11/6/09. Both tax credits should have the same beginning and ending dates. There seems to be other alterations to the parameters of the credit. Who can I contact to see if this can be changed?

Susan, there's a simple reason: because the $6,500 credit was approved as part of the extension and expansion of the first-time home buyer credit in November. It didn't exist before. Congress could have chosen to make it retroactive, if it had wanted to, and it did not -- presumably because it wants to encourage sales going forward, not spend money on the ones that have already happened.

If you'd still like to complain, try your representatives in the Senate or House.

I have a question on this concerning the following from the "Ambrose has more details on the Consuming Interests blog." link posted above:

"Q. I am a long-time homeowner (have owned and used my home as a principal residence for 5 consecutive years out of the 8-year period ending on the date of purchase of the new residence) but my spouse has lived there for only 3 years. Can we qualify for the long-time homeowner’s credit if we purchase a new principal residence?

IRS: No. For married taxpayers, both spouses must have owned and used the same previous principal residence for 5 consecutive years out of the 8-year period ending on the date of purchase of the new principal residence to qualify for the credit. Because your home has been your spouse’s principal residence for only 3 years, neither you nor your spouse can qualify for the credit. "

This is nearly exactly the case my spouse and I are in, however, I'm financing our new home by myself, she is NOT on the mortgage loan or anything related to the finances of it. So, do I still qualify for the credit?

Scott, I don't think you would, but that's just a guess. For the $8,000 first-time buyer credit, the IRS has said that the mere fact that one spouse owns a home (or has owned a home in the past three years) disqualifies the other from getting the credit for buying, even if that other spouse wasn't involved in the purchase, the financing, etc. So presumably that would apply in the case of the $6,500 credit, even if the sole purchasing and financing is for the new home.

You might want to consult a tax expert for a more, ah, expert opinion.

Here's the IRS Q&A I was referencing:

Q. If husband and wife wanted to sell the home that the wife owned when they got married, and the husband had not owned a home within the past three years, could he qualify as a first-time homebuyer for the credit even though the wife would not qualify?

A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the wife had ownership interest in a principal residence within the prior three years, neither taxpayer may take the first-time homebuyer credit. 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 prior three years from the date of purchase. The husband may not take the credit even if he filed on a separate return.

Q: Is 5 years of consecutive homeowner ship defined in tax years or actual date to date? Example-home purchased in October 2004, sold in April 2009, new home purchased in May 2009. Married the entire time. Qualify YES as this covered 5 filing years or NO because it was only 4.5 years on the calandar?

Jack, it's a no -- five full 12-month periods is the key. Columnist Eileen Ambrose wrote about that last month: http://www.baltimoresun.com/business/money/bal-bz.ambrose10nov10,0,6597533.story

I have moved a lot for work over the last 10 years. During that time I have owned 3 seperate primary residences, each for 2 years for a total of 6 consecutive years out of the last 8. Does anyone know if that would meet the 5 consecutive years requirement. I don't see how if I was a home owner for 6 of the last 8 years how moving for work should disqualify me for the $6,500 credit.

Matt, the law was written so that you have to have owned a single property for at least five years of the past eight and be getting the next one in order to qualify. Sorry to be the bearer of bad news.

My husband and I purchased our home in 1996 together. In May of 2007, my husband refinanced our house in his name only. Would we still qualify for the $6500.00 tax credit if we bought a new home today?

We purchased 26nov09. Lived in old resident 22yrs. Otherwise meet all other requirements. Does the IRS offer some sort of grace peroid for peoplein our saturation?

Betty, there's no grace period, but if you actually purchased on Nov. 26, then you don't need one. The repeat-buyer credit of $6,500 took effect for purchases after Nov. 6.

My husband and I are separated and have filed for divorce. It will not be final until mid-April. We owned our home together from Jan 04 - Dec 09. When we sold it, he bought a new house and filed for the $6500 credit. I am staying in an apartment temporarily but have a contract on a house. I will likely close at the end of February. Will I have any problems filing for the $6500 tax credit?

Christina, I don't know, but I suspect that you might be out of luck unless you close after the divorce is final. Take a look at this Q&A by the IRS about the $8,000 credit:

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Q. I am separated from my spouse and considered unmarried, and qualify for the unmarried head of household filing status. My spouse has owned a main home in the last three years, but I have not. If I buy a home on May 1, 2009, that otherwise qualifies, can I claim the first-time homebuyer credit?

A. No. Section 36(c)(1) 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. The taxpayer may not take the credit even if filed on a separate return.

http://www.irs.gov/newsroom/article/0,,id=206294,00.html

My husband and I have been married for 5.5 years. During that time we have lived in the house I purchased three years prior to our marriage. We never retitled the deed, so it still shows in my name only. We are purchasing a new home that will close by 4/30/2010. Do we qualify for the $6,500 existing home buyer credit, even though my husband hasn't technically been on the deed? For the last five years we have filed joint tax returns claiming the mortgage interest and property tax deductions together, if that is relevant.

Sara, I believe you'll be fine -- the IRS has said that marriage "imputes" ownership to the other spouse. The key is that you've been married and living there for at least five years.

Spouse and I have seperated, she has since purchase a new home (February) while I wait to sell the existing one. Does she qualify? Will I when I sell the old home?

Kenneth, the IRS has said that separation is treated as no different than married for purposes of the credit. So, to the best of my knowledge, one of you can get the credit -- or, I suppose, you can split it -- but you can't both get $6,500 apiece.

Also, keep in mind that selling a home isn't the qualifying action for the $6,500. It's buying a new place.

Now, if you close on a new home after getting divorced but before the credit expires, you should both be able to partake.

I was single and have owned and lived in my principal residence since 96. I married in 2008 I closed on our current home Jan 2010, (financing in my name only). Since we were not living as a married couple in my primary residence for 5 consecutive years we do not qualify for either credit. Is that what I am to understand here??

You got it, Bruce -- you don't qualify. I know this has frustrated many a recently-married homeowner.

Was there ever a final ruling from the IRS about spouses that cancel each othe out? I qualify for repeat buyer and my wife for first-time home buyer. We are closing in early April. It seems unfair that we cancel out each other and get nothing.

Byron, as this post notes, the IRS did make a final ruling, and it does cancel out spouses who don't both qualify for the same credit. Sorry.

Thank you. But if we were not married, we would qualify for the $8000 between the two of us?

If memory serves, Byron, your wife -- if she wasn't married to you -- would qualify for the $8,000 on her own. You would qualify for the $6,500 on your own. I haven't seen the IRS address this situation, but I'm guessing that if you were living together but unmarried, one of you could take one of the credits rather than each taking one.

I wouldn't recommend getting divorced for the eight grand, though. I think the IRS is keeping an eye out for that. :-)

We signed for our new home on Oct. 16th, 2009 but didn't move in until Feb. 6th, 2010 is there any way for the home buyer credit?

Brenda, you're wondering if you qualify for the $6,500 repeat-buyer tax credit? It's possible you do if the home you bought is newly constructed. The IRS has said the key date in that case is the day you move in. But in other situations, the key date is settlement day.

My husband and I purchased our current home June 16, 2005 and have used this as our primary residence since that time. If we enter in to a purchase agreement for a new home before the end of April but delay closing until after June 16, 2010 will we qualify for the credit?

Julie, the IRS defines "purchase" as your closing date, so that should work. (I'm pretty sure I asked that question specifically and got a "yes" answer, but darned if I can find it.)

Wife and I lived in primary residence since 1991. We separated in June 2009. She purchased mobile home in October 2009. I plan on staying and redeeding in my name only . We filed jointly for 2009 (for the last time) does she/we qualify for repeat home buyer?

W Dal, I don't believe either of you qualify for a credit. You're not buying a new place, just redeeding it so you're the sole owner, and your wife was a repeat buyer before that repeat tax credit existed. It was added in November for purchases made after Nov. 6 and before May 1. Details: http://www.irs.gov/newsroom/article/0,,id=206293,00.html

My ex husband and I are separated, with the divorce being final in March 2011. He bought the home we lived in before we married, but we lived in it for 12 consecutive years. The house was not paid off, but after we filed for divorce, he donated the house to me so that I could refinance it in my name. I keep seeing where you can't purchase a home from a spouse, but if you're separated does that count? Does this count for any type of credit?

Karen, I don't think so, even if it happened during the timeline for the homebuyer tax credit. (It's expired.) The IRS has said that marries "imputes" ownership, so for the purposes of credit qualification, it would have considered you the owner of the home already.

My husband and I have been living in a house since 2004. We purchased another house in May 2010 and intended to let my daughter's family live in the old house. Well, we haven't moved over to the 'new' primary residence since the renovation hasn't been going smoothly. Do we still qualify for the $6500 repeat home buyer credit?

I don't know, JR -- I haven't had luck finding anything about how much time you have to move in after buying. But you might have trouble. Maryland's definition of principal residence for the purpose of its homestead tax break, for instance, requires you spend at least six months a year in the home.

You'll want to pose your question to the IRS or a tax expert.

What if there are 2 unmarried people.
Person # 1 owns and resides in a home. He sells 1/2 interest in the home to Person # 2. The home is refinanced with a new mortgage and # 1 issues a Quit Claim Deed to both # 1 and # 2 jointly. This will be the primary residence for both. It is my understanding that # 1 doesn't qualify for a credit since he previously owned the home. What about # 2 - This is a new purchase for her. Would she qualify for the credit if she meets the other requirements? Thanks

Thanks in advance for answering these questions! Our situation re: long-time resident credit is that we owned House 1 from 1991 through 2007, clearly meeting the 5 years out of 8 requirement. We sold House 1 in Jan 2008, bought House 2 March 31, 2008, sold #2 in July 2009. Then we bought House 3 on May 20, 2010 (within Credit requirements) and live in it now. Do we qualify for the Long-Time Resident credit, or does the ownership of House 2 disqualify us, even though we meet all other requirements? House 1 met 5 out of 8; we bought House 3 during proper dates, we meet income rules, etc. It's just the ownership for intervening House 2 that makes us nervous. Thanks, Karen S.

Rose, sorry about the late response -- I lost track of your question and just noticed it now. But I'm afraid I have no idea. That's one for an accountant or the IRS, which has hotlines for questions: http://www.irs.gov/businesses/small/article/0,,id=161104,00.html

Karen, here's the language from the legislation that authorized the credit:

"In the case of an individual (and, if married, such individual's spouse) who has owned and used the same residence as such individual's principal residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence, such individual shall be [eligible for the credit] with respect to the purchase of such subsequent residence."

It sounds like owning house #2 would disqualify you, thanks to the "with respect to the purchase of such subsequent residence" wording. But don't take my word for it. The IRS has hotline numbers for taxpayer questions: http://www.irs.gov/businesses/small/article/0,,id=161104,00.html