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Question

I am buying a house from my mother and my stepfather. I undestand that individuals are not allowed to take advantage of the homebuyer tax credit if they buy from a close relative. I also understand that step parents are excluded from this rule. The morntage is in my Stepfather's name, but the title is in my mother and my step fathers name. Is there a way that I can claim the first-time homebuyers tax credit?

Submitted: 18 days and 15 hours ago.
Category: Tax
Value: $15
Status: CLOSED
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State/Country relating to question: Utah

Already Tried:
Just looking at the IRS website

Accepted Answer

Hello XXXXXXXXXX,

 

The rule for claiming the credit disallows a purchase from a close relative who is a lineal descendant. This includes your parents, grandparents, children or grandchildren.

 

You could not purchase a home that is also in your mother's name and still qualify for this credit. If the home were strictly in your step father's name, then you could purchase the home from him and still qualify for the credit. Here is what the IRS says about a step relative:

 

Step-relatives are neither ancestors nor lineal descendents and are therefore not related persons for purposes of the first-time homebuyer credit.

 

http://74.125.47.132/search?q=cache:YId9d0iJ-bAJ:www.irs.gov/newsroom/article/0,,id%3D206291,00.html+first+time+home+buyer+credit+relative+step+parent&cd=1&hl=en&ct=clnk&gl=us

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you XXXXXXXXXX.

 

 

 

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Expert: Merlo
Pos. Feedback: 99.8 %
Accepts: 
Answered: 11/4/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad

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