I have 2 clients (single individuals) that purchased and closed on a home together on September 29, 2010. Client #1, the boyfriend currently owns a house that he converted to a rental property since purchasing the new home. He has owned the other house for 4 years and would not be eligible for the credit. Client #2, the girlfriend has never owned a home. Is she eligible to claim the 1st time homebuyers credit? The cost of the home was $222,000. Both clients are on the mortgage and the house is in both their names.
-
John Valko -
Assuming they had a binding contract signed before May 1st to purchase the house before July 1st I don't see why she wouldn't be eligible. When multiple people purchase a home they can allocate the credit in any reasonable manner. Allocating from an ineligible taxpayer to an eligible taxpayer seems reasonable to me.
Comment