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$8000 tax credit

Hello, I am looking at buying a home that will be my primary residence.  It is a duplex in which I will owner occupy and the other unit will be rented to family. Since this is my primary residence and will not be used as income property will I still qualify for the tax credit?  I have been told both yes and no; and I cannot find anything on the IRS website that is specific to this scenario.  Any helpo would be greatly appreciated!
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June 27 2009 - Duluth
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No because it's a rental property.

Yes because it's your primary home.

I've seen this question on Zillow before and there is no definite answer on the IRS website. Your best bet would be to contact the IRS directly. The IRS will update their websites when they fine tune their opinions on who and who isn't eligible. But so far, they've not come up with the definitive answer to this common question.
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June 27 2009
Sen. Johnny Isakson has proposed raising the $ 8,000 to $ 15,000.
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June 27 2009
Here are two sites with some good information for you.

http://www.federalhousingtaxcredit.com/2009/faq.php#10

http://www.irs.gov/publications/p523/ar02.html#en_US_publink100027480

Basically what I read is that the rules for qualifying a property for the tax credit are the same rules for qualifying for the capital gains exemption.  Talk with a tax accountant about your specific situation.
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June 29 2009
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Call the IRS directly. Their helpline can give you a 100% answer. I know that it is legal for owner occupied duplexes to claim all other tax benefits as they would in a primary home like the mortgage deduction, deducting closing costs etc. I would think that you would be eligible as long as your fit the other criteria, but I am not a tax person. It is worth your time to make the call. A half way answer is not what you need. You need a ruling on this from the IRS.
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June 29 2009
 
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