My girlfriend and I are buying a house together. I am not eligible for the credit b/c I already own a home. I will be putting the down payment down, but we will be splitting the mortgage. We will both be on the deed, but under tenancy in common. This allows us to provide different ownership percentages, and hers will most likely be under 50%.
Can she claim the entire credit since I am not eligible?
Also, how can we divvy up the mortgage and property tax deductions?
This was just answered in my local newspaper - you CANNOT get the first time homebuyer's credit if a person on the mortgage or deed is, in fact, not a first time home buyer.
I'm curious to see what anyone else has to say because I considered this - I've owned several parcels of property and was thinking of buying property with someone else who is a first-time buyer. Both bank and mortgage company told me the property would have to be held exclusively in the other person's name.
I have found some articles and IRS publications which say that my girlfriend can get the whole credit. I just haven't found anything that's crystal clear, nor have I found anything addressing the ownership interest.
I have read publications that state differently, but most of what I've read applies to the old $7500 deduction. Can you state your sources please? Thanks
"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. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer."
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