Question from Charles
April 5, 2010 at 8:44am
My wife and I bankrupt on the acquirement of our home on Apr 3, 2009. The bulk of the home was beneath than 800K and our adapted gross assets for 2009 is 194K. Can we affirmation for the tax credit.
Answer: Charles – The acclaim you accredit to is the First Time Home Buyers Tax Credit, which is a refundable acclaim of 10% of the acquirement bulk to a best of $8000.
The instructions to Form 5405 food the answer to your question:
In general, you can affirmation the acclaim if you are a first-time homebuyer or a adept citizen of the aforementioned basic home (defined below).
You purchased your basic home amid in the United States:
After December 31, 2008, and afore May 1, 2010, or
After April 30, 2010, and afore July 1, 2010, and you entered into a bounden arrangement afore May 1, 2010, to acquirement the acreage afore July 1, 2010.
You (and your apron if married) did not own any added basic home during the 3-year aeon catastrophe on the date of purchase.
You do not accommodated any of the altitude listed beneath Who Cannot Affirmation the Acclaim on folio 2.
You cannot affirmation the acclaim if any of the afterward apply.
The acquirement bulk of the home (defined in the instructions for band 1 on folio 3) is added than $800,000. This aphorism applies to homes purchased afterwards November 6, 2009.
Your adapted adapted gross assets is:
$95,000 or added ($170,000 or added if affiliated filing jointly) and you purchased your home afore November 7, 2009, or
$145,000 or added ($245,000 or added if affiliated filing jointly) and you purchased your home afterwards November 6, 2009.
See the instructions for band 5 on folio 4.
You cannot affirmation the acclaim for any year for which you can be claimed as a abased on addition person’s tax return. This aphorism applies to homes purchased afterwards November 6, 2009.
You (and your apron if married) are beneath age 18 on the date of purchase. This aphorism applies to homes purchased afterwards November 6, 2009.
You are a adopted alien.
Your home is amid alfresco the United States.
You advertise the home, or it ceases to be your basic home, afore the end of the year in which you purchased it. This aphorism does not administer if you are a affiliate of the uniformed casework or Foreign Service, or an agent of the intelligence association on able official continued assignment as authentic in the instructions for band 12 on folio 4 and you advertise the home, or it ceases to be your basic home, afterwards 2008. You can affirmation the acclaim on the acknowledgment for the year of acquirement or accept to affirmation it on your acknowledgment for the year afore the year in which you purchased the home if you contrarily authorize for the credit.
You acquired the home by allowance or inheritance.
You acquired your home from a accompanying person. This includes:
Your spouse, ancestors (parents, grandparents, etc.), or affiliated birth (children, grandchildren, etc.).
A association in which you anon or alongside own added than 50% in bulk of the outstanding banal of the corporation.
A affiliation in which you anon or alongside own added than 50% of the basic absorption or profits interest.
For added advice about accompanying persons, see the altercation beneath Nondeductible Loss in Chapter 2 of Pub. 544, Sales and Added Dispositions of Assets. When free whether you acquired your basic home from a accompanying person, ancestors associates in that altercation accommodate alone the bodies mentioned in 9a above.
You acquired your home afterwards November 6, 2009, from a being accompanying to your spouse. This includes your spouse’s ancestors or affiliated birth (for archetype your parents-in-law or your stepchildren), and any relationships declared in 9b or 9c aloft that your apron has.
For the purposes of this acclaim magi is authentic as:
The bulk from Form 1040, band 38, added by the absolute of any:
Exclusion of assets from Puerto Rico, and
Amount from Form 2555, curve 45 and 50; Form 2555-EZ, band 18; and Form 4563, band 15.
You bankrupt on your home in April of 2009 and the magi absolute for purchases afore November 7, 2009 is $170,000 for a affiliated filing collective return.
Based on the advice you accept provided, you are not acceptable to affirmation the credit.
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