Zillow Advice: Home Buying - gifted home

The IRS 5405 FORM you can ...

Thu, 19 Mar 2009 02:50:00 GMT

The IRS 5405 FORM you can read the documentation.

It comes down to whether you have owned this property as a principal (main) residence. Or if you have owned any other home as a principal residence.

If this home your parents gave you is used as a rental property or as a second home, and NOT your principal residence, then you would qualify.

Ultimately, a tax accountant can help you determine your ability to claim the credit. If you need a link to more information about the credit, you can contact me and I will send you a link to more information.

I think the gifted house ...

Fri, 13 Mar 2009 13:50:00 GMT

I think the gifted house would eliminate you from the program. Here is what the IRS says "For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase." You can read more specifics here. If you lived in the home yourself within the last 3 years following the purchase, I would not think you would qualify for the credit. IF you have had it as a rental property instead for the last 3 years, I don't know what the answer is. Before you count on the credit I would consult a tax attorney or give the IRS a call to be sure. The way I read the IRS conditions, you would not qualify. That answer may be different if this property was a full time rental though. Was it a rental?

i'm sorry, i should have ...

Fri, 13 Mar 2009 12:12:00 GMT

i'm sorry, i should have been more clear....i am buying a new house and want to know if i would qualify for the credit considering i now own the home that my parents gave to me? would the gifted house eliminate me from being a "first time buyer"? thanks

so the answer is i would ...

Fri, 13 Mar 2009 11:32:00 GMT

so the answer is i would qualify for the credit?

not on that home you would ...

Fri, 13 Mar 2009 10:38:00 GMT

not on that home you would not, even if you had payed 1$ and "bought" it, still no.

"buying off your sister" does not count either

Adding to that, there are ...

Fri, 13 Mar 2009 10:04:00 GMT

Adding to that, there are a couple of details anyone considering the credit should know. One, the test for whether you're a first time homebuyer is whether you've had a mortgage deduction on your taxes in any of the previous 3 years. Two, the credit is the smaller of $8000 or 10% of the purchase price. So, if you buy a $30,000 foreclosure, you're limited to a $3000 credit...which is still pretty good!

No! gift is not considered ...

Fri, 13 Mar 2009 05:12:00 GMT

No! gift is not considered a "third party sale".