Related Party FIrst-Time Homebuyer Credit

[kguba]

I have a taxpayer that bought his first house from his Mom's estate. He paid FMV for the home and is a beneficiary of the estate. The Mom died in 2008 and he bought the home June of 2009. I was amending his 2008 tax return to take the 8000.00 First -Time Homebuyers credit. Would the credit be disallowed for the related party rules? I know a spouse, parent, grandparent, child or grandchild are considered related parties for this credit, but is an estate (that you are a beneficiary of ) considered a related party?

[JG EA]

Maybe not related party but the next bit in Notice 2009-12 :

the taxpayer’s basis in the property is not determined, in whole or in
part, by reference to the adjusted basis of the property in the hands of the person from
whom the taxpayer acquired the property, or determined under § 1014(a) (relating to
property acquired from a decedent).

[Davc]

Maybe not related party but the next bit in Notice 2009-12 :

If he purchased the entire property then his basis is not determined in whole or part by either. That would only apply if he inherited a portion of the property.

[Snaggletoof]

On Topic

Interesting notes about basis in a situation like this. But the original question was about the $8000 credit. Do the related party rules mess up the FTHB credit??