First Time Homebuyer

[Gretel]

I agree also that an ex-spouse doesn't count anymore for this purpose.

[Dusty2004]

Joan - question

The ability to file as HOH (considered unmarried) does not negate the fact that the person in the example IS still married. I agree with BP and the others. The divorced person, as long as he or she did not reside in the ex-spouse's home in the previous three years, did not own a PRINCIPAL residence in the three year qualifying period, and was not married at the time of purchase, and thus no imputed ownership exists.

Using your example then if a husband and wife live in different homes - he owns the home and she rents - no ownership - not on title - not on mortgage - never spent one night in the house - if she were to purchase a house of her own then she could claim the FTHB? If not what changes?

I really appreciate everyone's comments. I like to discuss and learn and I think this a good learning experience for me.

Dusty

[BP.]

if a husband and wife live in different homes - he owns the home and she rents - no ownership - not on title - not on mortgage - never spent one night in the house - if she were to purchase a house of her own then she could claim the FTHB? If not what changes?

No, because what has changed in your example is that they are married - husband and wife- spouses.

First, consider the marital status at purchase date, not the deed/mortgage/living status. If married at purchase, then go to the next step of considering those things; if single at purchase, no need to get to that next step of taking former spouse's situation into account.

[Dusty2004]

One final example

No, because what has changed in your example is that they are married - husband and wife- spouses.

First, consider the marital status at purchase date, not the deed/mortgage/living status. If married at purchase, then go to the next step of considering those things; if single at purchase, no need to get to that next step of taking former spouse's situation into account.

But first - I do appreciate all the comments as I am in this to learn together. So I hope no-one thinks that I am here to be a PITA - just trying to learn together.

Here is where I think we disagree and I could be wrong. I think you need to look at all 3 years and see if she qualifies each year.

March 2008 - March 2009 - Single - Did not own a home - qualifies.
March 2007 - March 2008 - Single - Did not own a home - qualifies.
October 2006 - March 2007 - Single - Did not own a home - qualifies.
March 2006 - October 2006 - Married - Did not own a home - Spouse owend a home - thus it is imputed per Section 36(c)(1) - requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase."

She fails because her spouse did own a principal residence. The fact that she is single now does not make her single in March of 2006.

Dusty

[dyne]

The problem is that if we allow this credit and are wrong, IRS could assert a penalty against
us. I plan to NOT allow this credit if I have any doubt after researching the issue.

[Gretel]

The problem is that if we allow this credit and are wrong, IRS could assert a penalty against
us. I plan to NOT allow this credit if I have any doubt after researching the issue.

That's OK but I doubt you serve your clients well. "Any doubt" means 1% and up. The IRS gives you 50%.

[dyne]

On the contrary, I am considered to be the BEST in this area by ALL of my clients
and several CPA's and tax preparers I know. I was interviewed and it was shown
on TV a few years ago and articles were written about me as far away as Atlanta, Ga
in newpapers about two years ago praising me. I saved the taxpayers in my state
2 millions dollars in state tax several years ago when I found an error in the law which I had
corrected. I do not like to brag but you challenged me.
dyne EA

[luke]

"serving

clients well" and taking unsubstantiated positions are TWO DIFFERENT things!
I'm NOT trying to get in the middle of something BUT we all need to be more aware of IRS "hammer" that they WILL be using.......

[Kram BergGold]

She gets the FTHB

I called NATP to make sure and they agree. She gets the credit.

[BP.]

That's great to know, Mark. Thx for updating us.
Barb

[Dusty2004]

Kram - thanks for the update

Did the give any details as to why?

Dusty