Home Buyer Tax Credit - parent co -signer

The Home Buyer Tax Credit is pretty straight forward if you have never owned a home before. It can get a little more complicated however for everyone else.

The IRS has posted a series of facts and Q. & A.s to answer some of the scenerios.

What if you are a first time homebuyer, but you need a parent to join on the mortgage and the deed in order to qualify for the loan? Can you still get the credit? According to the IRS you can.

Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much? 

A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A's primary residence.

 The IRS section arrived at by the above link also goes over many scenerios for new married or recently divorced couples.

Also, according to the IRS site, if you bought a primary residence several years ago but relocated more than 3 years ago and rented the home out, you can still qualify for the new home buyer tax credit.  The exception is, if you used that home as your primary residence at any time during the last 3 years.

If you are looking to buy or sell real estate in Bonita Springs, Estero, Naples or the Fort Myers please let me know. I work hard to make sure my clients are fully informed.

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