Lazzza

Does anyone know anything about this? Our realtor doesn't seem to know and nor does our mortgage company. I just tried to look this up on the IRS website. Heavens! I am crossed eyed!

We are buying a new build. My OH should be a US tax payer from March 2010. The house is due to be complete at the end of May.

It was the mortgage company which told us about this, otherwise we would not have known anything about it.

It would be great if we did qualify but I doubt we do.

Any clues?

Peter Newton

In a nutshell:

• Credit Amount – 10% of the purchase price with a maximum credit of $8,000 ($4,000 for those filing married separate) for first-time homebuyers

• Repayment Required: If the home is sold or ceases to be the taxpayer’s principal residence within 36 months of its purchase.

• Purchased: Between January 1, 2009 and before May 1, 2010 (July 1, 2010 if the taxpayer had entered into a binding contract before May 1, 2010.

• Home Location: Within the U.S.

• Home Price: For homes purchased after November 6, 2009, no credit is allowed if the home’s purchase price exceeds $800,000.

• Seller: Cannot be purchased from a close relative.

• When Claimed: Credit can be claimed on the taxpayer’s return for the year of purchase or the preceding year.

• Financing: Credit can be claimed even if financing is from tax-exempt mortgage revenue bonds.

Lazzza

Thank you very much for your reply. One further question:

Are we first time buyers? We are first time buyers in the US market but we have bought and sold several homes in the UK.

If this is our first house purchase as US taxpayers in the US, it would be great if we could claim this.

We certainly seem to meet all the other citeria.

Giantaxe

Three years of having not owned a principal residence. So you'd only qualify if you sold your last UK home three or more years ago. If you don't qualify, there's also a repeat-buyer's credit of $6,500:

http://www.federalhousingtaxcredit.com/

Lazzza

that's great, thanks!

sangiano

I don't think that is quite correct.

From http://www.irs.gov/newsroom/article/...206291,00.html :

Q. Would I be considered a first time homebuyer if I owned a principal residence outside of the United States within the previous three years?

A. Yes. A taxpayer who owned a principal residence outside of the United States within the last three years is not disqualified from taking the credit for a purchase within the United States.

Peter Newton

Yep- they don't take into account any residence owned outside the US. They want you to spend your money on a house here!

kronenborg

im sure you saw it, but there are limits to eligability based on household income

Undefeckable

There's also the main point - Non resident aliens don't qualify...

Blatant copy & paste from another website:

"A non-U.S. citizen who doesn't pass the green card test or the substantial presence test. If a non-citizen currently has a green card or has had a green card in the past calender year, he or she would pass the green card test and would be classified as a resident alien. If the individual has resided in the U.S. for more than 31 days in the current year and has resided in the U.S. for more than 183 days over a three-year period, including the current year, he or she would pass the substantial presence test and also be classified as a resident alien. "

Bob

But they do if they pass the substantial presence test, which is roughly 6 months in the US...

meauxna

OP isn't even here yet... ?

Bob

aye, but I was replying more in a general sense...

Peter Newton

When calculating the 183 days over the past 3 years, include 100% of the days from the current year, half the days from the previous year, and one third of the days from the year before that.

Englishtart

HE isn't coming is he?

meauxna

lol, THE OP, Lazzza...