Another question on the $8,000 tax credit - I think I'm not eligible!

[salsa34]

My spouse bought a home in 2005 before we were married.  I was never on the deed or the loan for this home, but we did deduct the interest on the tax return we filed jointly for 2006 and 2007.  That home went into foreclosure while my husband was out of the country (not by choice) in early 2008. 

I am in the process of buying a home (hopefully) this summer, my husband will not be on the loan or the deed.  Will I be able to claim the credit or not b/c my spouse owned a home in the past 3 years, but I did not.

Even if it is not technically joint property does the IRS view it that way b/c we file taxes together and both benefited from deducting the mortgage interest?

[medicgrrl]

I don't think you will be eligible.  Go to irs.gov  They have a lot of information on the credit.

[salsa34]

I read the FAQs on the subject, but it is still not entirely clear.

[Anonymous]

sorry, you can't claim the credit because your husband owned a primary residence within the past three years.

[WannaHouse]

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@salsa34 wrote:

My spouse bought a home in 2005 before we were married.  I was never on the deed or the loan for this home, but we did deduct the interest on the tax return we filed jointly for 2006 and 2007.  That home went into foreclosure while my husband was out of the country (not by choice) in early 2008. 

I am in the process of buying a home (hopefully) this summer, my husband will not be on the loan or the deed.  Will I be able to claim the credit or not b/c my spouse owned a home in the past 3 years, but I did not.

Even if it is not technically joint property does the IRS view it that way b/c we file taxes together and both benefited from deducting the mortgage interest?

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I am pretty sure this would disqualify you.

Message Edited by WannaHouse on 05-01-2009 05:06 PM

[salsa34]

uggh!  I am borrowing the down payment from my 401k and was hoping to repay it quickly with the credit.  Now, I'll have to pay an extra $80/month, which means buying a lot less house to compensate.  Hmmm....maybe we should just keep renting.

[medicgrrl]

The 401k won't be included in your DTI if that is what you were referring to.  It is paying yourself back on an asset & liquidable secured account

[Anonymous]

From IRS.gov

Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase.

So no, you cannot claim for the rebate if either of you has had an ownership interest in a property within the last three years. 

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@salsa34 wrote:
I read the FAQs on the subject, but it is still not entirely clear.

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