| There has been a lot of excitement and confusion | | | | period would start from the moment you no longer |
| about the new tax credit enacted by the Obama | | | | owned the property. For example, if you sold your |
| administration for first time home buyers. If you have | | | | home June 1, 2006 then you would be eligible as a |
| been living under a rock for the last six months, the | | | | first time home buyer on June 2, 2009. Of course, |
| new administration enacted a new tax credit for first | | | | you would still need to meet the other eligibility |
| time home buyers for 10% of the home's purchase | | | | requirements as well. |
| price, capping out at $8,000. The main difference | | | | I'm financing the house with my parents who are on |
| between this credit and the tax credit given under | | | | the loan. Can I still claim the credit? |
| former President Bush is that the credit for 2009 is | | | | The credit eligibility guidelines talks about property |
| not a loan. It does not have to be paid back like the | | | | ownership specifically. It does not say anything about |
| $7,500 tax credit of 2008. It is also a true credit, | | | | who is on the property loan. As long as you are the |
| meaning that if you qualify for the full amount, you | | | | sole person on the deed (or with your spouse), meet |
| would receive a tax refund for the full amount. | | | | all of the eligibility requirements, you can claim the |
| There are a lot of questions about eligibility, what the | | | | credit. Nowhere in the IRS guidelines does it state |
| money can be used for and how long it takes to get | | | | that a loan co-signer will disqualify you from claiming |
| it. So let's take a look at some of the more common | | | | the credit. |
| questions people have. | | | | I've filed an amendment to my 2008 to claim the |
| Can I buy a home from a parent or other relative | | | | credit. How long does it take to receive it? |
| and still receive the credit? | | | | According to the IRS, it takes about 8 to 12 weeks. |
| The simple answer to that question is no. Per IRS | | | | The check will be mailed to you; the IRS will not do a |
| 5405, you cannot receive the credit if you buy a | | | | direct deposit. |
| home from a parent, grandparent or other lineal | | | | So what's the bottom line? Talk to a qualified tax |
| relative. So that means that a parent couldn't buy a | | | | specialist if you aren't sure you qualify (and are |
| condo from their children or grand children and | | | | claiming the credit). Notice I said qualified tax |
| expect to collect the credit from the government. | | | | specialist. Finding someone that does taxes on the |
| I sold my home in 2006 and have been renting since. | | | | side on Craigslist that isn't a certified public |
| Do I qualify for the credit? | | | | accountant or tax attorney probably isn't the best |
| This is a fairly simple to figure out. Eligibility depends | | | | idea. Making a mistake and finding out later than you |
| on when in 2006 you were no longer a property | | | | have to pay back the credit is not something you |
| owner per the deed on the property. The three year | | | | want to have to do. |