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My brother passed away in january of 09, leaving me as his

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only surviving beneficiary,I am using...
My brother passed away in january of 09, leaving me as his only surviving beneficiary,I am using what money I have left from the life insurances to buy his home in witch he lived.I currently am living and run a small business in this home.He did not own this home as he was making mortgage payments, for the past year i have been making these payments, and they are outrageous-9.99%...My bank and I will be going half and half for the purchase of this home. Do i qualify for first time home buyer tax credit since he did not own this home and i will be buying it from the loan co. or do i not because he is a relative.?
Submitted: 7 years ago.Category: Tax
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Answered in 9 minutes by:
4/1/2010
Tax Professional: Stephen G., Sr Income Tax Expert replied 7 years ago
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,211
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Hi & thanks for using our service. I'll do my best to give you an a complete & accurate answer. Please ask me to clarify anything you don't understand.

 

Do you mean he owned the home subject to the outstanding mortgage?

 

Do you mean that you have inherited your brother's home subject to a mortgage of approximately 50% of the current value of the home?

 

Inherited real property (from a relative) doesn't qualify for the first time homebuyer credit.

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Customer reply replied 7 years ago

no he did not own the property, the motgage is 106,000 on witch he still owed . I will be having the loan payed off, but will be transfering the title and deed into my name. so Im actually buying it from the mortgage co.and not my brother who did not own this home yet.

 

Tax Professional: Stephen G., Sr Income Tax Expert replied 7 years ago

 

If he owed 106,000 on the mortgage note, he owned the property subject to the mortgage. He couldn't have been obligated on the mortgage note if he didn't own the property. He didn't own it outright, but he had to have owned it subject to the mortgage.

Stephen G.
Stephen G., Sr Income Tax Expert
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