IRS Sets New Rules for Tax Credit

The IRS has spelled out guidelines for eligibility for the home buyer credit when co-borrowers purchase a property.

When a home-owning parent of an adult child co-signs for a mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount.

The IRS says the parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.

When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.


Source:  Washington Post Writers Group | Kenneth R. Harney | (12/04/2009)

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This entry was posted in Foreclosures, general, Home Buyer Tax Credit 2009, Home Renovations, Housing Market News Update, mortgage, New York Real Estate and tagged , , , , , , , , , . Bookmark the permalink.

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