Person lives with girfriend in her house. She can't afford, so he buys it from her. Soon after, he marries her (within the 5-year period). Is he prevented from getting the credit because she was the principal resident during the 5-year period? I believe he would, since they were not married or related.
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Form instruction
this is from page 1 of the instructions booklet.....
"Note. If you were unmarried when you purchased your home and qualified for the credit, then married someone who does not qualify for the credit, and are claiming the credit for the year in which you are married, you can do one of the following.
• You can claim up to an $8,000 credit ($6,500 credit if a long-time resident) on a joint return.
• You can claim up to a $4,000 credit ($3,250 credit if a long-time resident) on a married filing separate return and your spouse is not allowed to claim any part of the credit on his or her return."
I am certainly not the end-all orifice of knowledge, and would wonder if he would not qualify because they are now married.
In a similar case, I have a question. My married clients are buying a new house. SHE owned their house long before they were married. He does not qualify, clearly, but SHE would qualify for the LongTime Owner. I read the instructions and see that it says you were long time residents if "you (and your spouse if married) previously owned and used ... blah blah blah..." They haven't been married for 8 years.
How do I handle that one?"I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey -
From IRS Q&A
This should answer both of your questions:
First-Time Homebuyer Credit: Scenarios
S1. If a single person (Taxpayer A) qualifies as a first-time homebuyer at the time he/she purchases a home with someone (Taxpayer B) that is not a first-time homebuyer and then later that year they marry each other, is the credit still allowed?
A. Eligibility for the first-time homebuyer credit is determined on the date of purchase. If Taxpayer A, a first-time homebuyer, buys a house and then later that year marries Taxpayer B, not a first-time homebuyer, the credit is allowable to Taxpayer A. Taxpayer A may take the maximum credit.
Q. I am a long-time resident (have owned and used my current home as a principal residence for five consecutive years out of the eight-year period ending on the date of purchase of the new residence) but my spouse has lived there for only three years. Can we qualify for the long-time resident homebuyer credit if we purchase a new principal residence?
A. No. 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. (12/14/09)Comment
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Holy Cow, Gene!
You are really NAILING THEM TONIGHT!Originally posted by Gene V View Post
Where do I get the Q&A's?
Cudos, my friend! And THANKS!"I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur GodfreyComment
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She no, He yes?
Different twist on the same FTHB credit.
SHE bought a house in November 2006.
HE hasn't owned a home in over 5 years.
THEY got married in November 2009 and he moved into her house. His name is not on the house.
They are buying a house and closing before April 1, 2011. (He was deployed military, so they have that later deadline.)
She thinks they qualify for the long-time home owner credit of $6500 but now that I have seen the dates, she will not have owned that house 5 years, until Nov 2011...
Does HE qualify for FTHB credit?"I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur GodfreyComment
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