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- Principal/Rental - 8K FTHB Tax Credit
Principal/Rental - 8K FTHB Tax Credit
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zebraceo
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Option 1: Purchase home together in 2009 – she applies credit to 2008 tax return
If we purchased a home together in 2009, assuming that I'm above the 2008 phased out income limit, would she be eligible for 100% of the $8K credit if her income is below $75K?
Option 2: Girlfriend (only) purchases townhouse - takes deduction on 2008 tax return - I defer compensation in 2009 to ensure I qualify for the credit based on 2009 MAGI – I (only) purchase home @ end of 2009..
-Can I qualify based on 2009 MAGI or is it only on 2008 MAGI?
-She'll purchase as principal residence, however I may purchase a home @ the end of 2009 while we're still not married. It's my understanding that to avoid refunding the credit, the home cannot be "sold" within 3 years from the purchase date. Can we rent out the unit and still be in compliance?
Leaning towards option 2 as this allows both of us to take advantage of the tax credit before getting married and would give us an opportunity to get into a rental property without having to put 20% down. I'm just not sure about the principal/rental portion...
Any suggestions greatly appreciated!
zebraceo
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