First-time Homebuyers

[Black Bart]

Questions:

(1) Is the three year requirement 365 days X 3 back from the closing date or three calendar years. If it's days, then is it like April 9th to April 9th or actual counted days.

(2) I heard there was talk in congress about changing the $7,500 loan to an outright grant (no payback). Anybody know anything about that?

[jimmcg]

BB- Don't know the ansser to #1 without researching it but the answer to #2 is yes, the recapture provision is eliminated in O'Bama's propossed "stimulus plan" however it has a very long way to go before it becomes reality or law.

[New York Enrolled Agent]

Questions:

(1) Is the three year requirement 365 days X 3 back from the closing date or three calendar years. If it's days, then is it like April 9th to April 9th or actual counted days.

From §36


c) Definitions.
For purposes of this section —

(1) First-time homebuyer.
The term “first-time homebuyer” means any individual if such individual (and if married, such individual's spouse) had no present ownership interest in a principal residence during the 3-year period ENDING ON THE DATE of the purchase of the principal residence to which this section applies.

[AZ-Tax]

What if ???

The couple got married in 2007 and filed their 2007 tax return as a MFS and their current residence in only titled in the TP's name? Of course this is AZ, community property state but could the spouse be considered a first time home buyer?

[David1980]

BB- Don't know the ansser to #1 without researching it but the answer to #2 is yes, the recapture provision is eliminated in O'Bama's propossed "stimulus plan" however it has a very long way to go before it becomes reality or law.

See, that seems so stupid to me. I mean if you create a stimulus act it should encourage people to do something to stimulate the economy. Not reward people for what they already have done. Unless he also intends to extend the period of time one can take advantage of the first time homebuyer credit in which case it could make sense.