Legal Question in Tax Law in Massachusetts
tax credit for 1st time home buyers
my partner and i want to buy a house in MA. he owns a house right now in MA and will be putting it on the market soon, needs to move due to job relocation. I never owned a house. will i be still eligible for the tax credit if we buy the next house together? can he cosign the loan and be on the deed or should my name only be on the deed? is there a way for me to buy my first house together with him and still get the tax credit. we are not married and our incomes are within the allowable limit.� whos should i talk to about it? Accountant? RE Attorney? Thank you
1 Answer from Attorneys
Re: tax credit for 1st time home buyers
This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.
First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.
Further,only those who purchase a home on or after January 1 and before December 1, 2009 are eligible.;)) Lastly,The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits;))
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