How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I purchase a first time home in a senior mobile home park.

This answer was rated:

I purchase a first time home in a senior mobile home park. I had to submit a cashiers check to the corporation for my equity share. The mobile home went through escrow with the seller. I would assume I get credit on both the escrow of the home and the equity share. Is that correct? I could only find this in the 5405 form instructions:
Who Cannot Claim the Credit
You cannot claim the credit if any of the following apply.
b. A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock of the corporation.
My equity share is 1 of 144 shares.

In order to claim a first time home buyer's credit - you need to purchase the home.

The part of the instructions that you pointed above covers the situation when the seller is the corporation which you own.


From your information - it is not clear who is the buyer of the home - you or the corporation.

If the corporation is the buyer - it may not claim the credit.

If you are a buyer - you may claim the credit regardless if the corporation paid for you or provided a loan to you.

Please review the purchase contract and the title - if your name is XXXXX XXXXX title and in the purchase contract as a buyer - you may claim the credit.


Let me know if you need any help.



Customer: replied 6 years ago.

I know I can claim the credit on the home. I was asking if I can also include the cash amount paid for my equity share since is not listed on the home escrow closing statement.

I am the buyer of the home. The owner of the mobile home was owner of 1 equity share of the mobile home park. I had to give a cashiers check to the corporation for the equity share and be accepted by the board of Directors when escrow started, then after escrows on the mobile home closed I recieved my certification of my equity share and possession of my lot and home and the previous equity owner is sent the equity money I paid to the corporation less any debt that could apply to the previous equity owner.They equity share can only be purchased with cash. So in short it was like 2 transactions for me, however, I purchased the equity share and the home from the owner of my space but the home went through escrow and the corporation took the

Appreciate your clarification.


Generally - the IRS will look at your HUD-1 or another similar statement and compare the purchase price on that document and the home price reported on the form 5405 line 1 -


See instructions for that line -

Line 1. The purchase price is the adjusted basis of your home on the date you purchased it. This includes certain settlement or closing costs (such as legal fees and recording fees) and your down payment and debt to purchase the home (such as a first or second mortgage or notes you gave the seller in payment for the home).


As the purchase of the equity share is directly related to the purchase of the home - it should be included into the basis and therefore should be added to the purchase price for the credit.

However - to avoid questions form the IRS and delay with the tax refund - you might want to add a note with explanation of your situation and attach the copy of a document about the purchase of an equity share.


See also IRS publication 936 -

A qualified home includes stock in a cooperative housing corporation owned by a tenant-stockholder. This applies only if the tenant-stockholder is entitled to live in the house or apartment because of owning stock in the cooperative.


Let me know if you need any help.


Edited by LEV on 2/2/2010 at 7:19 AM EST
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience: Taxes, Immigration, Labor Relations
Lev and other Tax Specialists are ready to help you

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Previous | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA

Meet The Experts:

  • Wallstreet Esq.

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
< Last | Next >
  • Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    10 years experience
  • Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • Richard's Avatar


    Tax Attorney

    Satisfied Customers:

    29 years of experience as a tax, real estate, and business attorney.
  • Robin D.'s Avatar

    Robin D.

    Senior Tax Advisor 4

    Satisfied Customers:

    15years with H & R Block. Divisional leader, Instructor
  • Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
  • jgordosea's Avatar


    Enrolled Agent

    Satisfied Customers:

    I've prepared all types of taxes since 1987.
  • R. Klein, EA's Avatar

    R. Klein, EA

    Enrolled Agent

    Satisfied Customers:

    Over 20 Years experience