We were put on the deed of a home while we were “renting to own” (1 yr) then all of a sudden the landlord wanted the rest of the cash. So we got out a home equity loan with the house to pay him what we owed him. Would this qualify us for the First-Time Buyer Tax Credit?
Will a home equity loan qualify us for the 1st time buyer tax credit?
19
May
jlf
May 19, 2010 at 10:37 am
If you owned a home (were on the title) within three years, you will not qualify. The loan is irrelevant. It is the property title that counts.
chatsplas
May 19, 2010 at 11:13 am
WHEN did you take title? When was deed issued and recorded? It is not a loan which qualifies you, but title.
http://www.irs.gov form 5405
first time home buyers credit
PepsiLime
May 19, 2010 at 11:39 am
Nope. You are already on the deed, so you aren’t legally a first time home buyer. It needs to be a mortgage that would let you “buy or purchase” the property. Home equity loan would not qualify.
Mathew
May 19, 2010 at 12:39 pm
You became a “First Time Home Buyer” and eligible for the credit (FTHBC) on the day that you were first on title. If that was between Apr.9, 2008 and Jan 1, 2009 you would be eligible for a $7,500 interest free loan from the government if you or the other person in the “we” had not owned a primary residence in the three years prior to taking title on this home. The loan would be repaid in 15 payments to be included in your tax returns beginning in 2011. To be eligible for the $8,000 FTHBC you would must have taken title between Jan 1, and Nov 30, 2009 which it appears you did not.
Judy
May 19, 2010 at 1:21 pm
When were you put on the deed? That’s the date that counts. It doesn’t matter whether you have a loan or not.
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May 19, 2010 at 1:59 pm
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