Hi

I have claimed home loan interest in my 2008 tax returns for a home in India not in USA. Now i am planing to buy a home in USA . I never owned a home in USA . Now my question is Am I Qualify for 'First Time Home Buyer Tax Credit' and FHA Loan. My accountant says that , I am qualify because i dont own a home in USA so far . Can you please give me your inputs on this .

Thanks
msraokvt

AtlantaTaxExpert

If it is your intent to rent the home in India, then you still qualify for the First Time Home Buyer's Credit.

chatakonda

http://www.irs.gov/newsroom/article/0,,id=206291,00.html

Q. Would I be considered a first time homebuyer if I owned a principal residence outside of the United States within the previous three years?

A. Yes. A taxpayer who owned a principal residence outside of the United States within the last three years is not disqualified from taking the credit for a purchase within the United States.

AtlantaTaxExpert

Noted. This guidance came out after my conversation with the IRS International Tax Hotline, so it is possible they had their legal staff research the intent of the law, then issued the clarification that Chatakonda cites above.