First Time Home Buyer Tax Credit Question?

Big Stee: First Time Home Buyer Tax Credit Question?
Ok, my wife and I are currently renting. We can’t really afford to buy the home we want right now but we are considering buying some investment property (i.e. two family house and renting it out) this year to take advantage of the tax credit. Can we claim the tax credit if this is case? Also, if you can, please provide the link to your source. Thank you.

Answers and Views:

Answer by starrfyrre
No you cannot. The first time home buyer tax credit is for primary residences only. You must purchase a primary residence and live in that residence for a minimum of three years (36 months). You cannot move out or sell the residence in that time or you must pay back the credit.

“Only the purchase of a main home located in the United States qualifies. Vacation homes and rental property are not eligible. For a home that you construct, the purchase date is the first date you occupy the home.”

Answer by hrblockerrolquinn
Dear Big: The rental deal doesn’t cut it, but there’s $ 8000 out there for you if you can swing an $ 80,000 house and live in it for at least 3 years. In three years the real estate market will probably recover and you can turn a nice profit (exclude able under today’s law).

This advice was prepared based on the tax laws in effect at the time it was written based on the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor