Posted on: 21st Jul, 2009 10:12 am
My parents bought a house and my wife and i are looking to buy it from them, are there any stipulations in buying it from them and not recieving the first time home buyers credit. My wife and i havent owned a house previously. Ive heard that i wont recieve the eight thousand if you buy from your parents, any info is appreciated.
that is correct, jake. you cannot claim the credit if you acquire the home from a related person.
yes, you cannot purchase a home from your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse
other imp conditions are:
home purchase must occur on or after January 1, 2009 and before December 1, 2009
"first-time home buyer" means a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return.
The tax credit is equal to 10 percent of the homes purchase price up to a maximum of $8,000.
other imp conditions are:
home purchase must occur on or after January 1, 2009 and before December 1, 2009
"first-time home buyer" means a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return.
The tax credit is equal to 10 percent of the homes purchase price up to a maximum of $8,000.
Would i be able to recieve it if we transferred the deed into someone elses name and then bought it through them?
and wouldn't that work out well...you'd be hard-pressed to find a lender to grant a mortgage when you're using what's called a straw buyer.
in 2009 a straw buyer will get you lumped in with all the other fraudulent real estate deals. don't do it.
in 2009 a straw buyer will get you lumped in with all the other fraudulent real estate deals. don't do it.
But in reality it could work, im not saying i would do it?
pick a scenario - any scenario - and you'll find that virtually anything can work at some point in time.
i just spoke with the rep. from the mortgage company through which i am going to buy my house and he said that i will be able to claim the tax credit since i have never owned a home and have rented the home i am going to buy. so your saying he is lying to me? i am buying it and currently rent it from my parents
suzie, your loan officer is apparently sadly mistaken. i won't accuse someone of lying about this tax credit issue - it's more complex than at first glance, but everything you would ever want to know about it is available at irs.gov - the irs website. your question is specifically addressed on that website.
why is it you can't purchase your first home from your parents and still receive the 8000? i'm buying the house at full value no strings attached. doesn't seem right!
Hi dougnangie,
As per the rules of the first time home buyer's tax credit, you cannot purchase a home from, among other family members, your ancestors, your lineal descendants or your spouse or your spouse's family members and claim the tax credit. For further information in this regard, get in touch with your tax advisor.
Take care.
As per the rules of the first time home buyer's tax credit, you cannot purchase a home from, among other family members, your ancestors, your lineal descendants or your spouse or your spouse's family members and claim the tax credit. For further information in this regard, get in touch with your tax advisor.
Take care.
dougnangie, there's little that can be done in that regard. when the tax credit was crafted (way back when), those who designed it must have contemplated that there would be those working to skirt the intent of the regulations by "selling" within families. although yours may be above board, you can certainly understand that there are those who would take advantage of the situation and reap an extra $8000 by using a bogus transaction.
unfortunately, for those who are legitimate in their intent, the rules are harsh; for those who would try to get something for nothing, the rules are appropriate.
unfortunately, for those who are legitimate in their intent, the rules are harsh; for those who would try to get something for nothing, the rules are appropriate.