"Does a married couple qualify for any home buyer tax credit in the following situation? Spouse A has lived in and owned the same principal residence for at least five years. Spouse B has lived in and owned the same principal residence for less than five years.
In this situation, the couple does not qualify for any home buyer tax credit. Because the couple is married, the law tests the ownership history of both spouses. Spouse A clearly does not qualify for the $8,000 first-time home buyer tax credit, so neither does Spouse B.
Spouse A does appear to qualify for the $6,500 repeat buyer credit, but because Spouse B has not owned and lived in the same principal residence for at least five years, neither of them can claim the repeat home buyer tax credit."
From First-Time Homebuyer Credit :
"For qualifying purchases in 2010, you have the option of claiming the credit on either your 2009 or 2010 return.
- You must have bought - or entered into a binding contract to buy - a principal residence on or before April 30, 2010.
- If you entered into a binding contract by April 30, 2010, you must close (go to settlement) on the home on or before June 30, 2010. "
Closing in May 2010 will only qualify if you had a binding contract on or before April 30, 2010.
Unfortunately, the law for married people is that both spouses have to qualify.
Either both spouses qualify as first time buyers or both spouses qualify as long time owners. If both can not qualify neither can take the credit (regardless of filing status).
I hope this helps to know the rules even though it is certainly not the answer you would have liked to hear.