Q: Two years ago, in 2007, I bought a condominium with my son. My son lives in the condo and it was his first home. My son is a student and is currently unemployed and has very little income to report to the IRS. Is he eligible for a first time home buyer credit or any part of it?
A: Your son is not eligible for the $8000 first time home buyer tax credit. To qualify for the tax credit – or any version of the tax credit that started in 2008 – your son must have purchased his home in 2008 or 2009. Since your son purchased his home in 2007, neither he nor you qualify for the $8000 first time home buyer tax credit.
The 2008 first time home buyer tax credit was for $7,500 and requires the first time home buyer to repay the credit over 15 years.
The 2009 first time home buyer tax credit that continues until June 30, 2010 is a tax credit in the amount of $8,000 and does not need to be repaid.