We have a bunch of new videos this week at HomeBuyerTaxCredit.com, so we wanted to make sure we highlight them here on the blog. In this video, we discuss all the issues that come up when you are buying with someone else, such as a girlfriend/boyfriend situation, unmarried life partners, or someone getting “help” from his or her parents.
We put together the video because we get a lot of questions on the Questions section like this:
I qualify, but my boyfriend doesn’t, should I buy on my own?
Does it matter if my parents are on the mortgage with me?
How much of a credit do I get if I’m buying with someone else?
We answer all those questions in the video. Check it out.
UPDATE 3.09.10: We have added the video we made about the Marriage Penalty.
UPDATE 4.13.10: The video references a “Fourth Type” of Marriage Penalty questioning whether a married couple would qualify for the Home Buyer Tax Credit in situations where the couple has lived in a home for the requisite five-consecutive-years-out-of-eight period but only one spouse is on the title to the property. The IRS has now confirmed for us that in those situations, ownership by one spouse would be imputed to the other spouse, so those couples would indeed be eligible for the Home Buyer Tax Credit as long-time homeowners (assuming they otherwise qualify).
We know that a lot of you have been following our coverage of the “Marriage Penalty” in the Home Buyer Tax Credit, particularly those of you who have been affected. We wanted to give you an update on two fronts:
First, we have put together a “Special Report” on the Marriage Penalty, which summarizes and reorganizes everything we’ve written about the Marriage Penalty in the Home Buyer Tax Credit. We thought it would be helpful as a document to send out to people who might be interested in the issue, particularly for your Congressional Representatives so that they understand the issues presented.
Second, and more importantly, we have a bill — H.R. 4701! Congressman Eliot L. Engle, the Representative for the 17th District of New York (and, in fact, my Conressman) has drafted a bill to fix the Marriage Penalty and is circulating it among his colleages on the House Ways and Means Committee. We have no idea if this bill has any chance of passage, but we are hopeful that our Congressional leaders will see that the impact of the Home Buyer Tax Credit will be severely undermined by the Marriage Penalty.
If you want to get involved, here’s what you can do:
Join our Facebook Cause, which is now up to 250 members. We’re not exactly “Farmville,” but it’s something….
The Home Buyer Tax Credit is a wonderful program, but the already complicated eligibility requirements of the tax credit become even more complex if you are a married couple, or buying with someone else such as a significant other, a friend, or a family member.
For that reason, we have provided this analysis of the challenges facing married couples trying to claim the home buyer tax credit.
Married Couples
The home buyer tax credit’s application to married couples is extremely restrictive, generally requiring that both married partners fully qualify in their own right for the couple to claim the credit. This has a lot of serious implications: Continue reading →
With all the work we’ve done putting together what we think is the most comprehensive analysis of the Home Buyer Tax Credit in the country – with our Overview, FAQ, Scenarios, At-A-Glance, and Eligibility Test – we came across a few creative uses of the tax credit that you might not think about.
Do you know, for example, how to use the Home Buyer Tax Credit to get started in real estate investing? Or to help your kids buy their first home? Or how an empty nester couple could use the tax credit to downsize to a smaller home?
Obviously, you should check with your accountant before making any moves, but if you’re curious about some of these applications, read on. Continue reading →
