A client asked me if they qualified for the $8,000 tax credit if she and her husband bought a home together. She already owns a home and he would be a first-time homebuyer.

 

The rules are a little tricky here. If you are buying a home with a spouse that has owned a home in the 36 months prior to the purchase, then this disqualifies you both even if you never owned a home. Thus, you will not qualify for the tax credit. As an alternative, the first time buying spouse may buy it alone so as to qualify. However, the other spouse will not be on the deed nor will they be allowed to go on the deed in the 36 months following the purchase. In my opinion, it is not worth not owning a home to save $8,000. But that is just my opinion.

 

There is also an income issue limit to qualifying for the credit. The IRS looks at you modified adjusted gross income to calculate you qualifying. A married couple must make under $150,000 and a single buyer must make under $75,000.   

 

Also know that if you take the credit in 2008, you have to pay it back within 15 years. If you take the credit in 2009, you do not have to pay it back.

Always check with your accountant to make sure you can do it.

 

 

Dale Siegel