Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I bought a home from my wifes family. The home was owned by…

Customer Question
I bought a home from...
I bought a home from my wife's family. The home was owned by 4 siblings. Her mother owned 25% of the home and the rest of the family owned 75%. I have been told by one IRS person that I do qualify for the first time home buyer's tax credit for the 75% that is not represented by my wife's mother. I was told by another that I do not qualify because one of the owners was a parent regardless of percentage. I cannot find the specific tax law regarding the credit and this issue. Any help would be greatly appreciated.
Submitted: 8 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 19 minutes by:
6/24/2010
Tax Professional: Robin D., Senior Tax Advisor 4 replied 8 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,383
Experience: 15years with H & R Block. Divisional leader, Instructor
Verified
Hello and thank you for using Just Answer.
Section 36(c)(3) defines “purchase” as any acquisition, but only if (i) the taxpayer did not acquire the property from a related person.
(5) Related persons. A person shall be treated as related to another person if the
relationship between such persons would result in the disallowance of losses under
section 267 or 707(b) (but, in applying section 267(b) and (c) for purposes of this section,
paragraph (4) of section 267(c) shall be treated as providing that the family of an
individual shall include only his spouse, ancestors, and lineal descendants).

Since your spouse's family owned the property you and your spouse may not claim the credit. When married each spouse must qualify and your wife's family are related persons that would disallow the credit.

I sincerely XXXXX XXXXX information is helpful,
Ask Your Own Tax Question
Customer reply replied 8 years ago
but wouldn't her uncles and aunt not be direct lineal descendants?
Tax Professional: Robin D., Senior Tax Advisor 4 replied 8 years ago
Her mother, even at 25%, knocks you out. The credit is for all the property or none. It was not written to claim partial credit on only a percentage of the property.
To avoid abuse, purchases from a relative are excluded. For this purpose, a relative is your spouse, one of your ancestors or one of your lineal descendants. Specifically excluded are siblings and cousins. Excluded if you buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

The IRS has disallowed when one sibling buys out another sibling for their half of a home.
Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Robin D. Your Own Question
Robin D.
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,383
18,383 Satisfied Customers
Experience: 15years with H & R Block. Divisional leader, Instructor

Robin D. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

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... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...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.WMatteson, 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.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, 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.

OrvilleHesperia, 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!!!!

AlexLos 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.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

18,383 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

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

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
My mom is considering gifting me her percentage (25%) of a
My mom is considering gifting me her percentage (25%) of a family partnership. my mom and 3 of her siblings own a mom and pop motel. Her 25% would roughly be $350k or so. If she gifts that to me, what… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
18,383 satisfied customers
If I share an investment property with my sibling and one of
If I share an investment property with my sibling and one of us moves in and sells it, is there any benefit in reduced capital gains tax to one or all siblings? Or is it an all or none situation where… read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
286 satisfied customers
My wife's mother was the beneficiary of an irrevocable
My wife's mother was the beneficiary of an irrevocable trust. That trust was set up by my wife's mother's mother in her will. Confusing huh? My wife's grandmother established a trust in her will for m… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I have a question regarding firpta taxes with a real estate
I have a question regarding firpta taxes with a real estate purchase. If the buyer does not live in the property for the 2 year period required who is responsible for paying the 15% tax?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am in this situation. I own a house together with my mom
I am in this situation. I own a house together with my mom and brother. They are both Italian and live in Italy right now. They have no social security in US. My brother is sick and my mom takes care … read more
Jonathan Tierney
Jonathan Tierney
MBA
295 satisfied customers
Im buying a house with a 70k downpayment. My mother will be
I'm buying a house with a 70k downpayment. My mother will be the sole borrower on the loan and because her job is in another state i'm told it will be considered a second home. She rents otherwise. Ca… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I bought home from stepmother (father had no ownership claim).
I bought home from stepmother (father had no ownership claim). Filed for the first time home buyer credit ( I and my wife qualify for this on all levels), refund has been delayed for over 6 months (it… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
Hi,We own a house ourselves. But we just signed a contract
Hi, We own a house ourselves. We lived in this house for almost 8 years. But we just signed a contract to buy a condo for our daughter who is a student at college and we claim her as our dependant in … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
18,383 satisfied customers
Is a first time home buyer eligible , who bought a home in
Is a first time home buyer eligible , who bought a home in January 2010 , for the IRS $ 8000 tax credit if : 1. the first time home buyer purchasd the home from a sister ( sibling ) ? 2. the first tim… read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
I have been writing off real state taxes for my primary residence
I have been writing off real state taxes for my primary residence for about 5 years now although the house loan is not under my name however the tittle is and I make all the payments. This year howeve… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I need to amend my earlier question. My mother, who is our
My earlier question: my mother is co signing for me and my wife for a home loan/home purchase in chicago IL. they both have good credit. I have no credit history. My wife is a first time home buyer. M… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
My husband and I purchased some property and a house for our
My husband and I purchased some property and a house for our son and family to live in since he couldn't get it on his own. He paid the mortgage payments as we purchased it with a home equity on our h… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
My wife and I were divorced living in two separate residences
My wife and I were divorced living in two separate residences in AL, I got a new job in MS (bought a house), and we decided to cohabitate for 3 childrens sake (she has no income). I now own all three.… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
My parents bought our family home in 1952. Mom died in 1968.
My parents bought our family home in 1952. Mom died in 1968. In 1974, , Dad added our sister's name to title so that she could serve as steward of proceeds when he died and family home was sold. Dad d… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Mother died leaving her home to five siblings. The estate
Mother died leaving her home to five siblings. The estate is still open. Can one of the siblings buy the home from the estate and take the first time home buyer's credit? Would your answer be the same… read more
Mark D
Mark D
Enrolled Agent
Master's Degree
1,338 satisfied customers
My mother (deceased 1 1/2 yrs.) left her house to us (children)
My mother (deceased 1 1/2 yrs.) left her house to us (children) in the form of a trust. We all are named as trustees. My brother wants to buy the house. Should the deed be transferred out of the trust… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Hello, My wife is a first time homebuyer this year. My father
Hello, My wife is a first time homebuyer this year. My father will be the co-borrower and is currenlty a home owner. So my questions are.... will my wife be able to take advantage of the 8,000 first t… read more
Lou
Lou
High School or GED
272 satisfied customers
My mother died and left her condo in a trust for myself and
My mother died and left her condo in a trust for myself and three other siblings. We each owned 25% of the condo. Last year I decided to buy out the other threes percentage of the condo. The money fro… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x