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Post Statistics: 934 Views, 1 Replies
Latest Post: Tue, Nov 10 2009 10:59 PM by Harlan Cooper
  • Tue, Nov 10 2009 11:49 AM
    • Anonymous
    Inherited Home - Not a First Time Homebuyer?
    I was joint inheritor of a home with my brother, but signed away my portion of it to him. I recently purchased a home of my own but was told that I didn not meet the criteria for a 1st time home owner. Is this true?
     
  • Tue, Nov 10 2009 10:59 PM

    No one can answer this question for you in this forum. Your specific situation needs to be presented to a tax professional. Here is some information from the IRS:

    http://www.irs.gov/newsroom/article/0,,id=206291,00.html

    "Q. Does previously inheriting a home and living in the inherited home automatically disqualify an individual as a first-time homebuyer with respect to a different home that is purchased within the prescribed 2008 and 2009 time frames? "

    "A. Yes, an ownership interest in a prior principal residence would preclude the taxpayer from being considered a first-time homebuyer. As long as the taxpayer owned and used the prior home as his principal residence, then he is not a first-time homebuyer. There is no exception for taxpayers who did not buy their prior residences. (05/06/09)"

    Note that this says "ownership interest in a prior principal residence would preclude the taxpayer from being considered a first-time homebuyer."

    Did you ever live in the home . . . make it your principal residence?

    If you inherited the home and lived in it as your principal residence, you do not qualify for the tax credit.

    If you inherited the home, but never occupied the home as your principal residence, you might qualify for the credit.

    Please contact a knowledgeable tax professional. This is too important a distinction to mess up. You don't want to get $8,000 from the IRS and then have them ask for it back or even worse say that you got it under false pretenses.

     - View My Profile
    Branch Manager
    Affiliated Bank
    hcooper@transnetloans.com
    (972) 572-5600
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