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I just purchased a condo in March 2010 and would like to file for the first time home buyer credit.
However, back in 2002 when my parents bought their house they put me on the deed as they had just moved to the US and couldn't get a loan on their own. I have put their home address as mine on the tax returns for 2007 and 2008 however I claimed the rent I paid to my parents and not as a home I owned.
Do I still qualify for the first time home buyer credit?

Thanks!

Niicss · Posted: Fri Mar 19, 2010 3:43 am Post subject:

If your name is on the property deed of your parents, you won't be considered as the first time home buyer. Thus, you won't be able to claim the first time homebuyer's tax credit.

gmakerley · Posted: Fri Mar 19, 2010 1:44 pm Post subject:

if you claimed rent payments made to your parents on your tax returns, you filed incorrectly. you can't write off rent payments made.

check with a tax advisor or the irs (irs.gov) directly for a pure answer to your question. i recall, i think, seeing something that might allow you to obtain the credit...but i am not a tax advisor nor an irs agent and don't want to mislead you.

jveenstra · Posted: Fri Mar 19, 2010 2:54 pm Post subject:

As George noted, somewhat confusing scenario and only an accountant can tell you properly.
You can claim the credit if you did not own a main home the last three years. If you lived there, it was your main home and you are not eligible.
If you did not live there, it was not your main home and you may be eligible. But, if it was not your main home, but, you used that address as your main home, you have muddied the waters. See an accountant.

Do you mean your parents paid rent to you and you reported that as income on your tax returns? That would be logical and may help your case. As George noted, it reads like you paid rent and reported it and that is not permissible, unless it had something to do with a state refund as opposed to IRS deductible item.

Guest

Thanks for your responses...I meant to say that I paid rent to my parents and claimed it on my state returns...sorry for the confusion.

jveenstra · Posted: Mon Mar 22, 2010 6:32 am Post subject: Rent

Let me see if I have this correct.

You bought a house for your parents. You own it. You live in it. You also pay rent to them.

If you own it and live there, you are not eligible for the first time homebuyer credit.

If you live there and own it and pay rent on something you own you can not file in NJ that you rent it. I may be missing simetning. You own a house and live there. You have a mortgage payment and you pay rent besides????

gmakerley · Posted: Mon Mar 22, 2010 9:36 am Post subject:

it looks to me like we are all missing something. what that something may be is subject to much conjecture, of course.

what state tax agency would allow a person to claim a deduction for rental payments made? that's pretty bizarre all in itself, and that's before we even begin to look at the entirety of the scenario.

Posted: Mon Mar 22, 2010 11:44 am Post subject:

Hi...i think i have my answer and it is that i can not claim the first time home buyer credit but rather the repeat home buyer credit.
My parents bought the home for themselves in 2002 but put me on the deed and mortgage as well because they had just moved to the US and had no credit. I was 19 at the time and still living with them. I never contributed to the down payment or mortgage since it was my parents house not mine but i paid them a modest rent each month. In MA you can claim the rent you pay on your taxes so i claimed the rent i paid to my parents. I never thought of myself as a homeowner but since my name was on the deed in addition to my parent maybe that was wrong...
However since i am on the deed and that home was my primary residence for 5 years during the last 8 I believe I qualify for the repeat home buyer credit.
Thanks again for your help.

gmakerley · Posted: Mon Mar 22, 2010 12:43 pm Post subject:

ahhh...now i like that new response because i now feel like i know what's going on. and i agree that the repeat buyer credit would seem to be yours if you get into contract quickly enough and can close quickly enough.

i had no idea you could write off your rental payments in massachusetts. i'm sure everyone living (and renting) on the border would be willing to drive a few miles further if they knew of this advantageous tax consideration.

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