First-Time Home Buyer

[Gary]

Happy Holiday everyone. I was reading my copy of TheTaxBook today and I have a question. The way I understand the credit, if two or more unmarried individuals purchase a principal residence, the total credit with respect to the residence is limited to $7,500, and must be allocated between the individuals. However, what is the phaseout AGI? Is it the lower value or the MFJ value? Do you add the two modified AGIs together to make the determination?

[veritas]

The TaxBook?

Mine must be at Steamboat Springs in the Rockies.

[S T]

Waiting in Anticipation

I am waiting for my Cd Copy!

Sandy

[solomon]

I have my doubts the two AGI's are added together, but have not seen official guidance yet. In the TB, there is a typo for the single personal phaseout - shows 78K and should be 75K.

[Gretel]

Happy Holiday everyone. I was reading my copy of TheTaxBook today and I have a question. The way I understand the credit, if two or more unmarried individuals purchase a principal residence, the total credit with respect to the residence is limited to $7,500, and must be allocated between the individuals. However, what is the phaseout AGI? Is it the lower value or the MFJ value? Do you add the two modified AGIs together to make the determination?

There is not much guidance out there yet. As far as I know the taxpayers can choose how to allocate the credit as long as it doesn't exceed $7,500 per house. So, if one TP wouldn't be eligible for the credit, the other one can take it all.

[Gretel]

I am waiting for my Cd Copy!

Sandy

I am still waiting for my book. Sandy, look at the shipping schedule. CD's are not supposed to be shipping before the middle of Jan.

[solomon]

So, if one TP wouldn't be eligible for the credit, the other one can take it all.

For a married couple, I know this is not the case here, both must be eligible or the credit can not be taken at all.

[Gretel]

Yes, that sure is true. However, this question was about un-married people. Nevertheless, it sure is good to clarify this since we all tend to overlook things when we read a post. I am certain that some people already thought this might apply to married people as well.