Is Our Daughter Considered a ‘First-Time Home Buyer?’
By: Sarah Greenleaf, PR Intern | September 29, 2009
Reggie15 asks on Zillow Advice:
“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.
- Stumble it!
- Categories: 8000 tax credit, Real Estate Advice
Comments
2 Comments so far
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Laurel "Gerry" Hackley on September 30, 2009 10:46 am
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 on September 30, 2009 3:31 pm
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