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Merlo
Merlo, Accountant
Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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We are trying to buy a house, closing on the 31st of August

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We are trying to buy a house, closing on the 31st of August and are wondering about the New Home Buyer Credit. We moved out of our previous home in June of 2006, but the sale did not close until 31 August, 2006 (we have rented since then). We tried to schedule our closing for our new house on 1 September, but the builder needed to sell by the end of the month. Can you please tell me if the three year stipulation will be satisfied using these dates?
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.
Hello D2D,

For the purpose of this tax credit, a first-time homebuyer is defined as someone who has not owned a primary residence in the three-year period ending on the date of purchasing the new home.

If you are purchasing this new home on 8/31/09, your 3 year period would be 9/1/06 through 8/31/09. Since you sold your last home on 8/31/06, that means you did not own a home during your qualifying 3 year period, and therefore you are eligible to claim this tax credit.

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Thank you D2D.

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