Ok, I have a crazy situation and hoping someone can help me out. In August 08' my aunt in Japan bought a home for me with the understanding that I would purchase it as soon as I could qualify for a home loan. I am now in that position, however, the deed is in my fathers name. I have worked hard these past years working on my credit score to buy this home. I am wanting to purchase it now however to qualify for the first time home buyers credit it cannot be purchased from parents, grandparents, children, siblings, but it can be purchased from an aunt or uncle. The predicament I am facing is that essentially I am buying the home from my aunt but the deed says my dads name. How do I go about transferring the deed to my aunts? Will we have additional taxes to pay even thought we paid the property tax every year and she's selling me the home for what she paid? She has not made any money off this deal just trying to help her niece. Thank you for any advice or info!!

Hello l:

If it was me, I'd just buy the house as it's presently titled. You claim the credit on your tax return, and if you're audited, you can explain it then. If you attempt to transfer it NOW, you're going to raise the same questions and will probably be audited for THAT reason.

excon

Quote:

---

Originally Posted by excon

Hello l:

If it was me, I'd just buy the house as it's presently titled. You claim the credit on your tax return, and if you're audited, you can explain it then. If you attempt to transfer it NOW, you're going to raise the same questions and will probably be audited for THAT reason.

excon

---

Why would we get audited? Sorry, I am confused. We have paid all applicable taxes regarding the property and my aunt has not made a capitol gain on this property, she is simply letting me live here until I can get a loan and buy it back for the initial purchase price.