$8000 First Time Home Buyer Tax Credit Not Available If You Owned A Home Within Last Three Years
Q: In August of 2006, I bought a house for my parents because I had excellent credit. I was trying to help out my desperate parents, who were unable to buy on their own. They pay the mortgage each month and other expenses of the property but the house is in my name. I lived there a year and then got married and moved out.
*Now my husband and I want to buy a house. My mother was going to be the co-signer with my husband. The problem is because I’m not a first time home buyer, I don’t qualify for the tax credit. Therefore even though my husband is a first time home buyer and I’m not going to be in the mortgage, we can’t take advantage of this incentive. *
Is there anything I qualify for? Is the government going to change this rule? I find this very unfair because unmarried couples can buy a home together and claim the credit. Please help. Thank you.
A: I wish I could help you secure a home buyer tax credit, but there’s nothing I can do for you. Unfortunately, the house that your parents now live in is in your name and you lived in that home for about a year. While there is no tax credit prohibition against being an owner of investment real estate, you cannot have owned a primary residence in the past three years.
It sounds as though you’re close to being out of the property for three years, but the thing is, you have to sign a contract to buy a new home by April 30, 2010 and must close on the new home by June 30, 2010. I can’t tell from your email whether the timing will work out or not. If not, you will likely miss out on the first time home buyer tax credit.
You can walk through a well-done questionnaire at HomeBuyerTaxCredit.com to see if you qualify. I don’t believe the federal government will change the terms of the home buyer tax credit, although stranger things have happened. If the housing market continues to deteriorate, the Federal government might agree to extend the home buyer tax credit.