Long story short: My husbands name is on the loan and title of a home purchased 6 years ago. His brother and he (and his brother's wife) purchased this home together at that time. Less than 2 years later, he was "kicked out" and has been renting since. (He does not and has never made payments on the home. He is on the loan and title because his brother did not qualify on his own (and he blindly let himself get into a bad situation). It's his brother's main residence, and my husband has not stayed there in over 3 years.) We recently married (2 years ago). We are now looking to purchase a home, and I have never owned a home. Would we qualify for the tax credit (since the residences he has lived at the previous 3 years were not owned)? The IRS website speaks of "principal residence" and "primary residence". What are the legal definitions of these?
PS. Yes, we know it's late in getting started towards the tax credit, but congress is looking at possible extending the time frame and I'd like to be informed if they do.
He qualifies.
Plus, he's been renting, so he has rent receipts.
Plus, he doesn't use that address on his returns.
Plus, he doesn't even claim interest or property taxes.
Dear Lori: Owned "AND" lived in is the dis-qualifier.
You guys qualify!
See www.irs.gov and the FAQ's
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent
Yes. Just read through the rules laid out on the form.