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First time homebuyer with fiance'...Then get married

Hello all, and thank you for any help.

My niece (who qualifies as a first time homebuyer) and her fiance' (who does NOT qualify for the first time homebuyer's credit) are closing on a home together in April, 2010. Both of their names will be on the mortgage and on the deed and this will be thier primary residence. They are then getting married in May, 2010.

If I understand correctly my niece has two options after she closes on the new home:

  1. She can amend her already filed 2009 single return and claim the credit on her 2009 single return for a cash payment of ,000 (it is a 0,000 home)or,

  1. She can wait and file a married filing joint return in 2010 and claim the 00 credit on their jointly filed 2010 return.

Do I understand this correctly?

Thanks!

Reply to
mmurrell
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When two unrelated persons buy a new home, IRS Guidance says that the first time home buyer credit can be split between the two buyers using any reasonable method. One example provided, is the instance where one buyer qualifies for the credit and the other buyer does not qualify. The buyer who qualifies can take the whole credit. Therefore, your first option is viable.

Eligibility for the credit is based on one's status on the date of purchase. A subsequent marriage to someone who is not eligible does not eliminate the right of the buyer to take the credit on a joint return. Under your second scenario, she would still be able to take the credit on a jointly filed 2010 return as long as the purchase date is before the marriage.

All of the above assumes that all of the other eligibility requirements that were not stated in the OP are fulfilled.

Reply to
Alan
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removeps-groups

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