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Do they qualify for the Tax Credit?

By
Real Estate Agent with First Weber Hedeman Group

had this unique scenario so I thought I would pass this on:

 

Does a married couple qualify for any home buyer tax credit in the following situation? Spouse A has lived in and owned the same principal residence for at least five years. Spouse B has lived in and owned the same principal residence for less than five years.
In this situation, the couple does not qualify for any home buyer tax credit. Because the couple is married, the law tests the ownership history of both spouses. Spouse A clearly does not qualify for the $8,000 first-time home buyer tax credit, so neither does Spouse B.

Spouse A does appear to qualify for the $6,500 repeat buyer credit, but because Spouse B has not owned and lived in the same principal residence for at least five years, neither of them can claim the repeat home buyer tax credit.

 

Steve

 

 

From Scott Larson of Towne Square Realty in Monroe, Wisconsin

“Your Realtor of the Region”

E- Mail scott@greencountyhomeguide.com

On the web at www.greencountyhomeguide.com

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so come to my land of cows and plows and visit for a day, but stay for a lifetime

608-2124-9844 Direct

 

Posted by

 

 

Martin E. Kalisker, Esq.
Natick, MA
Real Estate Law From A Practical Perspective

As a CPA (inactive), I never give tax advise when I am wearing my realtor hat or signing with my real estate company identified.  Although your response seems clear cut, there may be a different outcome if you live in a community property state versus joint tenancy, and depending upon how you will hold title to the new property.

In situations like this, I always cut and paste my standard response: "You should consult with a tax attorney or CPA regarding any questions about this.  If you need the name of a couple people that I've worked with, I'd be happy to provide you with a list of names."

Jan 21, 2010 04:38 AM
Scott Larson
First Weber Hedeman Group - Monroe, WI
SRES

Thanks for the advice

Jan 21, 2010 04:45 AM