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    #1

    Another FTHB question

    All,
    As the ink is drying on the new credit, I've already had two questions, one of which I'd love some other insight on. Situation is:

    Wife owned condo for 7 years, lived there the entire time as her principle residence. Recently short sold the property.
    Husband lived in the condo as his principle residence for 5 years - 3.5 years before they were married, and 1.5 after they got married. He was on the title, but not the mortgage.

    He is going to purchase a home in his name only (her credit is wreked due to the short sale). They intend to file a joint tax return. Does he qualify for the $6,500 move up credit? AGI and property price are not issues here.

    My first take is yes, but I'm not 100% yet. Thanks all!!
    ATG
    "Congress has spoken to this issue through its audible silence."
    Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?
    Tags: None
    #2
    Since no replies I'll think out loud....

    Can they put both names on the deed but not the mortgage?

    If not I would say she qualifies but he does not.

    -if she does not have ownership in the new home she cannot receive the credit.
    -if he only has ownership of the new home he cannot receive the credit.
    -if both names on new home she qualifies, therefore on a joint return they could receive the credit.
    http://www.viagrabelgiquefr.com/

    Comment

      #3
      why isnt her name on that new mortgage? If they are still married, it shoudnt matter if her credit it bad, they are still gonna pull it. I say, put her name on it and you shouldnt have any probs.


      Chris

      Comment

        #4
        thinking out loud

        is good. I think you can be "in title" here in MN without being on the mortgage. (My wife and I looked at this back when we were trying to buy a house and my SE status was goofing us up). I would never have thought of that on my own - thanks Jesse!

        That does bring up a good point. I think they would both qualify on their own, right? He owned the home and lived there for 5/8 years, as did she. I suppose if she is in title, it doesn't much matter. Thanks again!

        ATG
        "Congress has spoken to this issue through its audible silence."
        Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?

        Comment

          #5
          Originally posted by spanel View Post
          why isnt her name on that new mortgage?"Chris
          Problem here is his credit is good, and hers is totaled. From my understanding, the short sale is preventing them from qualifying together, but he qualifies on his own between credit and income. Good thoughts just the same.

          ATG
          "Congress has spoken to this issue through its audible silence."
          Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?

          Comment

            #6
            Originally posted by AuditorTurnedGood View Post
            All,
            Husband lived in the condo as his principle residence for 5 years - 3.5 years before they were married, and 1.5 after they got married. He was on the title, but not the mortgage.

            ATG
            I'm sorry, I misread or misunderstood, I thought you were saying he lived there 5 years (-)minus the 3.5 before they were married. So I interpreted it to mean he did not qualify, but his wife would.

            In this case with or without her name on the deed they would be eligible for the full credit on the MFJ return.
            http://www.viagrabelgiquefr.com/

            Comment

              #7
              Originally posted by Jesse View Post
              I thought you were saying he lived there 5 years (-)minus the 3.5 before they were married. So I interpreted it to mean he did not qualify, but his wife would.
              I should watch my use of the - when talking with accountants and tax people! Sorry for the confusion, thanks for the info!

              ATG
              "Congress has spoken to this issue through its audible silence."
              Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?

              Comment

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