Hi all,
Excited about this forum and I’d appreciate anyone’s advice.
So, I decided to buy a home this year and take advantage of the $8K tax credit from the stimulus bill, but I live in a really expensive market. My boyfriend lives in a great market in a neighboring state though. I was hoping to buy a 3br home there, which he will live in while renting out the other 2 rooms.
Unfortunately, I just realized the tax credit is only for primary residences. Is there a way I could make that work, maybe by putting it in both our names, or are there other tax credits for first-time buyer/landlords that someone knows of?
Thanks so much for any help!
you could co-sign the loan for him and have him title the property in his name, then he would qualify for the tax credit. just be careful about cosigning because YOU’RE liable for the debt.
I’m not aware of any other major tax credits for first time homebuyers (similar to the federal one you’re referring to) but there are TONS of state housing incentives for new buyers, just do a little research for your state.
Thanks, yeah I was thinking about that but wondering how then to make sure that if something happened to him, I still get the house, since it would be my property really…
Oh, and then I wouldn’t be able to claim all the tax breaks on my income taxes for landlords and mortgages either…
Hm…I can’t buy in my market, but if I buy in his where I can afford it, I don’t get the tax break, making it less affordable. Conundrum.
Anyone know the rules for qualifying something as your “primary residence”?
As far as I know, a “primary residence” is where you live most of the time. It’s the address you put on your tax return. It’s your physical address where you can get served legal papers. Where the utilities are on in your name.
You can always have a second home, but you can’t have 2 primaries. Ask your tax adviser about it.
Look under “$8,000 Obama Bucks buy Son’s Home” thread. I gave the very specific questions asked to qualify that home for the tax rebate.
Furnishedowner
To echo what furnishedowner said, the definition of principal residence is a bit murky, but in general the following would be litmus tests in establishing your principal residence:
-Your place of employment
-Where your family lives
-The address you use on your tax return
-The address you use for your general mail, bills, bank statements, and brokerage statements
-Where you maintain your bank accounts and banking relationships
-Where you maintain your memberships (such as country clubs, health clubs, etc.) and religious affiliations
-ETC