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does the tax credit apply to a two unit house

I was told that I would get the full $8000.00 tax credit for a two family home and now I am being told that I would only qualify for half because I am living in only half the house
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October 19 2009 - Augusta
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Hi moo moo,

As I stated in your other post, please check with an accountant on this.
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October 19 2009
Here's the quote from the IRS.

Q. I purchased a duplex home with two separate dwelling units. I will live in one dwelling and will rent out the other dwelling unit and report the rental income on Schedule E. May I qualify for the first-time homebuyer credit, and what amount do I use for the purchase price to determine the amount of the credit? 

A. Yes, you may qualify for the credit for the dwelling unit that you use as your principal residence. To determine the amount of your credit, you must allocate the purchase price of the duplex between the two separate dwelling units. Your credit is 10% of the portion of the purchase price of the duplex allocated to your dwelling unit that you use as your principal residence, up to a maximum credit of $8,000. You may not use the entire purchase price of the duplex to determine the amount of your credit.

http://www.irs.gov/newsroom/article/0,,id=206291,00.html

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October 19 2009
 
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does the tax credit apply to a two unit house
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October 19 2009 | 2 answers
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