Dec 05, 2009
IRS releases new home buyer tax credit guidelines
05 Dec 2009
Posted by VAR
Syndicated WaPo columnist Kenneth Harney points out that new IRS guidelines about the renewed and expanded home buyer tax credit were recently released. There’s a great Q&A section in the new guidelines, and Harney plays one of them out in his column:
For example, some taxpayers seeking the extended $8,000 credit are uncertain about co-purchase and co-signing situations, especially involving parents and adult children. When a homeowning parent co-signs for a mortgage with a son or daughter and both names appear on the note, can the son or daughter qualify for the first-time purchaser credit?
The IRS says the parent clearly does not qualify for any portion of the credit because he or she already owns a principal residence. But if the son or daughter has not owned a house during the three years preceding the purchase and qualifies on income, he or she can be allocated the entire $8,000.