1st Time Homebuyers

[1040notEZ]

I have a married couple. He is 18 years old and she is 17 years old. He bought a house on contract last year with her father. The contract is in his and his father-in-laws name because she is only 17. They have never owned a house but the father-in-law already owns a house.

I have two questions.
1-Can they get the credit since they are married and file MFJ and she is only 17 if her name is not on the contract?
2-Can he get the full credit with the father-in-laws name on the contract.

[BP.]

need purchase date

The date of purchase will be controlling here because spouse's age may preclude credit.

The fact that she is not on contract is not a factor. The fact that they are married is.

Father-in-law is not an issue. If taxpayer qualifies, he can get the full credit.

See TTB 11-3 FTHB chart.

[1040notEZ]

Purchase date was 12/20/09. They were already married then. She was 17 then and still is.

[Bill Tubbs]

good for credit

all of last year is good for $8000 credit for FTHB

neither 18yo nor 17yo (presumably) owned a home in prior 3 yrs, so 18yo qualifies. Fact that f-i-law is also on title does not disqualify 18yo from credit.

[taxmom34]

would the relation portion of buyer come into play here? Tb 11-4 no credit is allowed if home is purchased from a person related to the buyer. a related person includes an individual related to the spouse of the person buying the house.

[Bill Tubbs]

purchased WITH related party

purchased WITH related party. original post didn't say anything about it being purchased FROM a related party

[taxmom34]

sorry, misread post

[BP.]

Disagree

Wondering if buyer does not qualify, based on purchase date and age of spouse. Referencing the 5405 instructions- p. 2, #4- Post 6 Nov 09 both buyer & spouse must be over 18.

However TTB 11-4 says if one spouse meets age requirement, the other is treated as meeting it as well.

These two references seem to me to be in conflict. http://www.irs.gov/pub/irs-pdf/i5405.pdf

OK- FTHBC FAQ page irs.gov:

"The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement."

Agree with Bill- You are right! Good to go!

Thanks, TTB. Relying on just the Form 5405 instructions I'd have gotten this one wrong!