Comments on: Questions?

By: Joseph Rand

Joseph Rand — Fri, 25 Jun 2010 13:42:23 +0000

Hi @Anthony, thanks for your post, and for your service to our country. I’m afraid that I’m a little fuzzy on some of the military requirements. It’s clear that certain military personnel have an extra year to get into contract and close on their transactions, but the qualifications for that extension are probably best answered by you or someone who knows the meaning of the terms referenced in the statute. The rule seems to be that if you were deployed away from your home for a period of time in the past year or so, you qualify. I doubt that coming home for one week during a deployment would invalidate the deployment. You should read over the legislation on this point, and maybe check military regulations to find the definitions of the terms the statute uses.

By: Joseph Rand

Joseph Rand — Fri, 25 Jun 2010 13:40:33 +0000

Hi @Roger, thanks for posting. The date you get the mortgage isn’t the issue, the issue is when you took title to the property. If you took title after November 6, 2009, then you’d be eligible for a credit (assuming you meet the other guidelines). It looks like you closed well before the June 30 deadline, so that’s not an issue either.

By: Joseph Rand

Joseph Rand — Fri, 25 Jun 2010 13:39:21 +0000

Hi @Matt, the IRS told me one thing, and then told a board contributor another. It’s clear that the spouse definitely has to live in the property for at least five consecutive years out of the last eight. The question is whether that “spouse” has to have been a spouse during that full time, or whether turning from boyfriend to fiance to spouse during that time would still qualify. The IRS has been unclear on this, so other than tee up the issue for you I don’t have a definitive answer.

By: Joseph Rand

Joseph Rand — Fri, 25 Jun 2010 13:37:31 +0000

hi @Deva, I don’t think that you’d qualify. The $800,000 limitation seems to be a hard limitation, that limits the applicability of the credit. It doesn’t look to me that the legislation allows for a proration of the credit based on ownership of a property above that limit. But you might want to call the IRS to make sure.

By: Deva

Deva — Wed, 23 Jun 2010 14:44:25 +0000

Hi Joseph,
We co-purchased a multi-family home (before the deadline) above the property limit of $800,000 with another family (we’re all co-owners) — We reside in a portion of the home that would in isolation be < $800,000 (and are paying < than that — though the contract was sold as 1 lump sum) — can we qualify for the credit and how?
Deva

By: matt

matt — Thu, 17 Jun 2010 03:53:26 +0000

Joseph, any current update on how the IRS is imputing ownership to a non titled spouse that has live in the residency for at least 5+ years, but was married within the last 5 years? I know you made this pretty obvious in previous posts that the imputed ownership would qualify, but a recent post states a couple must reside AND be married for 5+ years in the same residence. Do you know which way it is?

Thank you,

Matt

By: roger

roger — Wed, 16 Jun 2010 19:22:36 +0000

I had a house build in Nov. 2006 with a construction loan from a friend. The mortage industry lock up, so I could not get a mortage. I paid intrest only on the loan from my friend until April 2010. I closed on a HUD loan in April. Would I be eliable for the $8000, since I didn’t have a mortage until April 2010.

By: Anthony

Anthony — Wed, 16 Jun 2010 18:22:33 +0000

I was a military member from 2005-2009 and during 2009 I was deployed for five months. I however came home for one week during that time frame. Do I qualify for the first-time homebuyer credit extention and if so what do I need to do?

Thank you

By: Joseph Rand

Joseph Rand — Fri, 11 Jun 2010 00:10:15 +0000

Hi @Jie, thanks for posting. Ugh, this is going to be bad news. You purchased your home three days too early to qualify for the step up credit. There was nothing in the law at the time that made a distinction for certificates of occupancy, so I’m afraid that from my reading you would not qualify. Sorry for the bad news.

By: Joseph Rand

Joseph Rand — Fri, 11 Jun 2010 00:08:34 +0000

Hi @Daryl, thanks for posting. Okay, let’s unwrap this. First, if you’re not married at the time your fiance bought the house, then you’re not a “married couple” subject to the Marriage Penalty. Second, your fiance has to BOTH own AND live in the property for the three years to keep the credit, so she can’t move out of the place to live with you. Third, your moving in with her doesn’t make any difference, and shouldn’t affect her tax credit. You’re not entitled to any part of it, since you are not on the title, but she can keep it.