Can I as a first time home buyer buy a house and get the 8000. from irs if its a duplex? Any help is great. I am going to live in one side. Thanks !!!
Yes, a duplex purchase is eligible for the first time home buyer tax credit. The amount you get is 10% of the purchase price for your residential unit UP TO $8000.
If you purchase a duplex for $100K, occupy half as your primary residence and use the other side for rental income, then the IRS will allocate half of your purchase price to your residential unit, and the other half to your investment property purchase.
Since the tax credit is based on only the amount you pay for your primary residence, your tax credit in this example is 10% of $50K, or $5000 if you are otherwise qualified as a first time homebuyer.