Long-time Home Buyer Credit - 2 homes

[numberkruncher]

TP and spouse have owned a personal residence for 5 consecutive years of last 8 years.

Issue is: the law is phrased "the SAME principal residence". TP & spouse have owned 2 homes consecutively during 5 years of 8 year period as their principal residence. Sold first home in 2006 to buy home #2, which they sold in fall of 2009 before buying current "home buyer credit" home in distant city.

TP and spouse shared the same principal residence at all times, but are they disqualified because more than one building is involved? Am I splitting hairs over the word "same"?

I'd love some opinions.

"FTHTC available for existing homeowners who are “long-time residents.” For purchases after Nov. 6, 2009, any individual (and, if married, the individual's spouse) who has maintained the same principal residence for any 5-consecutive year period during the 8-year period ending on the date of the purchase of a subsequent principal residence is treated for FTHTC purposes as a first-time homebuyer of that subsequent principal residence.

[dsi]

I think your clients are out of luck on this one.

[Gene V]

Only way I could see this working, if you sold your first home after Nov 6, 2006, then you would qualify for the 5 consecutive years (2001 to 2006) out of 8 years.

[Possi]

2 months short?

My cllient owned his home from Aug 03 to May 08.

He is buying his home on Jan 29, 2010.

I think he does not qualify because he comes up short by 3 months.

If he did qualify, it is not until 2010 return.

Am I right?

[Gene V]

My cllient owned his home from Aug 03 to May 08.

He is buying his home on Jan 29, 2010.

I think he does not qualify because he comes up short by 3 months.

If he did qualify, it is not until 2010 return.

Am I right?

I would say you are right--3 months short.
If did qualify--can elect to claim on 2009 return. TTB page 11-3

[Possi]

I looked...

...but didn't see the election. Didn't look hard enough. Sorry... and thank you.

His fiance is buying the house with him and she didn't have a house before. The only hitch there is that she has been in school and has little or no income. I told him that for her to qualify, she had to be a co-purchaser and not merely a name on the title.

I said her name had to be on the closing statement to qualify.

Something for nothing... everybody wants some...

It's gonna be a long, financially successful tax season with all the confusion and freebies.