ChEAr$ Bees Koss dyne?

[luke]

I would appreciate your input on this matter? THANKS

a previous post about First Time Home Buyer Credit talked about "imputed" ownership for husband & wife - Would that "imputed" ownership interest also apply to Long time home buyer credit?
(Spouse owned home in her name only - BOTH husband and spouse lived in it for over 5 previous years - now they are buying a new home - do they qualify for $6500 "long time" homebuyer credit?)

[BP.]

Spouse owned home in her name only - BOTH husband and spouse lived in it for over 5 previous years - now they are buying a new home - do they qualify for $6500 "long time" homebuyer credit?

Sorry, not the requested & able ChEAr$, Bees Knees or dyne, but have a look at irs.gov, where you'll find this:

"Both spouses must have owned and used the same previous principal residence for five consecutive years out of the 8-year period ending on the date of purchase of the new principal residence to qualify for the credit."

[luke]

Or Bp....

BP - Sorry I couldnt list ALL the Sr members that I "respect"!

What about the info below from someone's earlier post?

"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. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse"

This seems to allow both spouses to qualify?

[BP.]

Luke, I think in the case of the long time homeowner, both spouses must meet the use & ownership qualifications. The section you quoted is for the true first time home buyer. That's how I read it, anyhow, and I don't think use & ownership is imputed, as it is for the true first timer. All the faq's & scenarios at irs.gov say both spouses must meet the tests for the $6,500. These are getting to be head-scratchers!
Barb

[Dusty2004]

Not in the group

I would appreciate your input on this matter? THANKS

a previous post about First Time Home Buyer Credit talked about "imputed" ownership for husband & wife - Would that "imputed" ownership interest also apply to Long time home buyer credit?
(Spouse owned home in her name only - BOTH husband and spouse lived in it for over 5 previous years - now they are buying a new home - do they qualify for $6500 "long time" homebuyer credit?)

I am not part of the group that you asked but that never stopped me ;>)

The part you quoted from would be for the first time homebuyers not the long term homebuyers.

IF both husband and spouse lived in the home for 5 consecutive years out of the previous 8 years they do qualify for the long term home buyers credit of $6,500 (or 10% of the cost of the home whichever is smaller) even if only one of them was technically the owner of the house.

Dusty

[dyne]

In researching this issue all I found was in irs.gov where it said:
..."must show that they lived in their old home for five consectutive years during the
eight year period ending on the purchase date of the new house". It also requires
that documentation be submitted establishing:
1. home mortgage interest was paid on the old home.
2. tax receipts paid on the old home.
3. homeowners insurance record.

I have NOT had even one client who might qualify for this credit yet so will research this further if I encounter it.

[luke]

Thanks

BP Dusty2004 Dyne - I have not seen this exact situation spelled out but I will do some more research but right now I'm leaning towards giving the credit (It also "complicates" matters because it is my daughter and son-in-law)
Thnaks again!

[BP.]

The part that stops me from thinking they qualify is this excerpt from irs.gov, where it states that BOTH spouses must OWN & USE the same main home during the lookback period:

"Both you and your spouse must be long-time homeowners of the same previous principal residence in order to qualify for the long-time resident homebuyer credit. Since your spouse is not a long-time homeowner of your current principal residence, neither of you qualify for the credit."

Attaching the required docs will prove ownership by only one of the spouses.

[BP.]

even if only one of them was technically the owner of the house.

Dusty, could you share the source of the language in the quote above? I haven't been able to find it anywhere yet. Thx! Barb

[Dusty2004]

BP - This what I based it on

Dusty, could you share the source of the language in the quote above? I haven't been able to find it anywhere yet. Thx! Barb

BP:

This document from the irs - http://www.irs.gov/newsroom/article/...202222,00.html.

Item number 3 is

To be considered a long-time resident homebuyer you and your spouse – if you are married – must have lived in the same principal residence for any consecutive five-year period during the eight-year period that ended on the date the new home is purchased. Additionally, your settlement date must be after November 6, 2009.

It does not state that both of you must the home owner just that both of you must have lived in the same principal residence for any consecutive five-year period.

Dusty

[BP.]

Thx, Dusty! Certainly doesn't seem quite as restrictive as the language elsewhere on irs.gov that clearly states both spouses must own & use the former home as principal residence.