This is from an email I received from Amy Swaney of People’s Mortgage that answers some FAQ’s about the First Time Home Buyer Tax Credit
“I have received the many questions about how to determine whether someone is considered a first time homebuyer as people are beginning to realize the impact of the First-Time Homebuyer Tax Credit. The most common has been, “what if my spouse owned a home prior to our marriage but I did not” or “what if I need a co-signer that is not my spouse and they already own a home?” So I thought I would provide you the common answers to these questions.
What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter.
For more information on the first time homebuyer tax credits go to http://www.federalhousingtaxcredit.com/faq.php for some great info!”
Amy can be reached at:
480-529-3008 Direct
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