One of the questions I am often asked as a mortgage advisor is "if my parents co-sign will I still be eligible for the $8000 First Time Homebuyers Tax credit?"

Well I have an answer - direct from the IRS's mouth!

Finally an answer to the question we get so often - Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much?  

Hi, 

I researched your question concerning the First Time Homebuyers Tax Credit. I've included the web links to the information as your source material.

The link to the IRS - American Recovery and Reinvestment Act of 2009 Information Center is: http://www.irs.gov/newsroom/article/0,,id=204335,00.html

First Time Homebuyer Credit Scenarios at: http://www.irs.gov/newsroom/article/0,,id=206294,00.html

Here is a sample of what is on this web page above:

QUESTION - Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much?  A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A's primary residence.

Finally, more answers can be found on our web page titled: First Time Homebuyer Credit: Answers at http://www.irs.gov/newsroom/article/0,,id=187935,00.html.

Craig Bland is a Mortgage Advisor with Academy mortgage in Atlanta.  Call today 678-234-0545