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Is Our Daughter Considered a ‘First-Time Home Buyer?’

Date:September 29, 2009 | Author:Sarah Greenleaf | Category:8000 tax credit

“Is our daughter considered a ‘first time home buyer’ for the purpose of the 8,000 tax credit?”

The worried parent continues:

“We purchased a condo six years ago and added our daughter’s name to the deed. We paid cash for the condo – we paid the homeowners and the taxes, and she lived there and paid us rent. She now wants to purchase a home. Can she be considered a first time home buyer? She moved out of the condo 1.5 years ago. “

The answer looks like a no.

Here’s more on the $8000 first-time homebuyer tax credit.

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Responses (3)

0 tweets 1 likes 2 comments

Laurel "Gerry" Hackley 10:46 AM - Sep 30,2009

I say yes! Your daughter has not been a homeowner as you define her above. She did not have the deed in her name and was not able to claim any deductions for homeownership on her Fed. tax return; therefore, I say she should be able to purchase a home for the first-time homebuyer tax credit of up to $8000 credit if she is on contract for the home and is able to close prior to Nov. 30. If I were you, I would phone a couple of loan officers and see what they say. Further, if an individual/couple have not owned a home in 3 years, they may also qualify.
Gerry Hackley 281/414-5211
Realtor Associate (since 1972) and also former instructor of Real Estate Finance at Houston Community College.
lou Higgins 3:31 PM - Sep 30,2009

an ownership interest in a prior principal residence would preclude the taxpayer from being considered a first-time homebuyer. As long as the taxpayer owned and used the prior home as his principal residence, then he is not a first-time homebuyer.

you said your daughter was on the deed that is ownership, unless you removed her 3 years ago. She lived in the property 1.5 years ago so it would be her primary residence.

Did you show the property as a rental on your tax returns while your daughter lived in the unit? that might help.

Talk to your CPA or accountant.

see the web site below for more info,

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

be careful and best of luck

Lou Higgins
Vice President
Clear Lake Mortgage Corporation