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Arthur Rubin
Arthur Rubin, Tax Preparer
Category: Tax
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Experience:  22 years of tax preparation experience, including individual, trust, and estate returns.
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We are not married. We bought a house in 2009 with cash, in

Resolved Question:

We are not married. We bought a house in 2009 with cash, in Arizona. He still owns a house in South Dakota. I have not been a homeowner since 2004. I am unemployed and we are living on his retirement income. Because I have no income, I do not file taxes. He does file taxes in South Dakota, and his CPA has me claimed as a dependent on his returns.

Is there a way we can claim the first time home buyer tax credit?

Thanks, Gina
Submitted: 4 years ago.
Category: Tax
Expert:  Arthur Rubin replied 4 years ago.
Chat Conversation Started
Arthur Rubin :

I've got a couple of possible scenarios under which you could claim the credit.

Arthur Rubin :

If he didn't live in his house in South Dakota for 3 years prior to the purchase, he qualifies directly. From the sound of it, that appears not to be the case, but it had to be said.

Arthur Rubin :

If you purchased the home on or before November 6, 2009, or if you were not a dependent in 2008, you could claim the credit against your 2008 taxes. However, if it's a non-refundable credit, it might not do you much good.

Arthur Rubin :

Ah, it is refundable. However, you still need to claim the credit on your (amended) 2008 or 2009 Federal tax return, if you meet the qualifications in my last statement.

Customer :

We would like to understand why . We closed on December 28th, 2009. Why would it matter if I was a dependent? Could Dave file an ammended 2009 tax return with his CPA in South Dakota if we bought the house in Arizona?

Arthur Rubin :

My mistake; I didn't read the "already tried" section. He cannot qualify if he wishes to remain an SD resident. But, if the property is your "main home" from the time of purchase, and either he and you purchased the home on or before November 6, or if you could not be claimed as a dependent in 2008, you could claim the $8,000 credit on your 2008 Federal tax return.

Arthur Rubin :

In order to qualify for the credit, you have to use the house as your "main home", and not have owned a "main home" for 3 years prior to sale.

Arthur Rubin :

If you look at the instructions for Form 5405, under "Who Cannot Claim the Credit", you can see point 3:

Arthur Rubin :

You cannot claim the credit for any year for which you can be claimed as a dependent on another person’s tax return. This rule applies to homes purchased after November 6, 2009.

Arthur Rubin :

So, unless the AZ home qualifies as his "main home", and he had owned no "main home" between 12/28/06 and 12/28/09, then he cannot qualify for the credit.

Arthur Rubin :

If the AZ home qualifies as your "main home", and you were not a dependent in 2008, you can claim the credit only on your 2008 return.

Arthur Rubin :

In either case, if the home ceases to be the "main home" within 3 years, you may need to repay the credit.

Arthur Rubin :

If you have at most $750 income, you probably don't need to file a tax return in whatever state you are resident, or a Federal return, except to claim credits.

Arthur Rubin :

I suppose it needs to be said: the credit is limited to $8,000 or 10% of the cost of the home, whichever is less. I don't know how much homes run in AZ these days; when I was last there, a real home under $80,000 was possible.

Arthur Rubin :

Your "main home" is "ordinarily the one you live in most of the time."; IRS Publication 523 has other factors which may help determine which of your homes is your "main home". It is possible for Dave to have his main home, domicile, and residence in SD, while your main home, domicile, and residence is in AZ, but you need to watch the factors involved carefully.

Customer :

Thanks for the info. I'll look at those forms and show them to Dave. Thank You again!

Arthur Rubin :

Any more questions?

Customer :

I think I'm good. You answered my question and gave me some info I needed to find the documentation. I did accept the answers on line. Did you get that?

Arthur Rubin :

I don't see the Accept. Maybe I need to close the chat before it will take.

Arthur Rubin, Tax Preparer
Category: Tax
Satisfied Customers: 1277
Experience: 22 years of tax preparation experience, including individual, trust, and estate returns.
Arthur Rubin and 6 other Tax Specialists are ready to help you
Expert:  Arthur Rubin replied 4 years ago.
I'm afraid I don't see the Accept. Sorry to bother you again.

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Arthur Rubin
Arthur Rubin
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22 years of tax preparation experience, including individual, trust, and estate returns.