Posted on: 15th May, 2009 10:19 am
I have a complex question, but I'll try to word it easily.
A close family member (not spouse) wants to sign over the title/deed of their home, which I live in. I owned a house in 2001-2003, lost due to foreclosure and divorce, so I know that I qualify for the 8k tax credit since I have not owned for more than 3 years.
My family member wants to retain the mortgage on the home, but sign over ownership to me, in hopes that when my credit is repaired enough, I can obtain my own mortgage. I know that requires some legal paperwork to ensure accountability on all sides - that's not the issue.
The question is... if my family member signs over the ownership of our home to me, so I can get the 8k tax credit (to help me work towards getting the mortgage on the house itself), do I actually qualify for the credit, even though there's no mortgage involved?
We met with a professional on this yesterday but he's not 100% sure how the rules work, since this tax credit hasn't been around very long. Nobody seems to have a clue how this works.
If the quick-transfer of the title/deed is legal, and all parties involved agree and the house is simply handed over like that, do I still qualify for the tax credit?
If anyone can provide insight into this, I'd be forever grateful! =) Thanks!
A close family member (not spouse) wants to sign over the title/deed of their home, which I live in. I owned a house in 2001-2003, lost due to foreclosure and divorce, so I know that I qualify for the 8k tax credit since I have not owned for more than 3 years.
My family member wants to retain the mortgage on the home, but sign over ownership to me, in hopes that when my credit is repaired enough, I can obtain my own mortgage. I know that requires some legal paperwork to ensure accountability on all sides - that's not the issue.
The question is... if my family member signs over the ownership of our home to me, so I can get the 8k tax credit (to help me work towards getting the mortgage on the house itself), do I actually qualify for the credit, even though there's no mortgage involved?
We met with a professional on this yesterday but he's not 100% sure how the rules work, since this tax credit hasn't been around very long. Nobody seems to have a clue how this works.
If the quick-transfer of the title/deed is legal, and all parties involved agree and the house is simply handed over like that, do I still qualify for the tax credit?
If anyone can provide insight into this, I'd be forever grateful! =) Thanks!
hi jstoopes!
welcome to forums!
as far as i can understand your situation, you won't be able to qualify for the first time homebuyer's tax credit as you will not be taking over the mortgage in your name. if you can refinance the property in your name, then you would be able to get the advantage of the first time homebuyer's tax credit.
feel free to ask if you have further queries.
sussane
welcome to forums!
as far as i can understand your situation, you won't be able to qualify for the first time homebuyer's tax credit as you will not be taking over the mortgage in your name. if you can refinance the property in your name, then you would be able to get the advantage of the first time homebuyer's tax credit.
feel free to ask if you have further queries.
sussane