Unmarried taxpayers purchase a house together may be able to claim the First-Time Home Credit as long as the taxpayers satisfy the requirements of the credit. You can check out my last post for detail of requirements.
According to the IRS, the credit could be allocated based on the taxpayers’ contributions to the purchase price, ownership interests in the residence or “any other reasonable method”. The reasonable method only include allocating the credit between taxpayers who are eligible to claim the credit based on the taxpayers' contributions to the purchase price as either tenants in common or joint tenants or the taxpayers' ownership interests as tenants in common. The total credit is limit to $8,000 if the eligible purchase occurs during 2009 or up to $7,500 if it was between April 9, 2008 to December 31, 2008. Tenants in common give the owners right to leave his or her interests upon death to beneficiaries who he or she chose. If the property owns by owners as join tenants, when one owner dies, ownerships of the deceased owner will automatically be allocate to other owners.
The IRS provided a guideline in the notice 2009-6 to explain the reasonable method on allocation of the credit with several examples.
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According to the IRS, the credit could be allocated based on the taxpayers’ contributions to the purchase price, ownership interests in the residence or “any other reasonable method”. The reasonable method only include allocating the credit between taxpayers who are eligible to claim the credit based on the taxpayers' contributions to the purchase price as either tenants in common or joint tenants or the taxpayers' ownership interests as tenants in common. The total credit is limit to $8,000 if the eligible purchase occurs during 2009 or up to $7,500 if it was between April 9, 2008 to December 31, 2008. Tenants in common give the owners right to leave his or her interests upon death to beneficiaries who he or she chose. If the property owns by owners as join tenants, when one owner dies, ownerships of the deceased owner will automatically be allocate to other owners.
The IRS provided a guideline in the notice 2009-6 to explain the reasonable method on allocation of the credit with several examples.
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Before purchasing a property, primarily secure that you have enough source of income. Be certain that you have sufficient funds on a long-term basis to insure that you'll be capable of paying your monthly amortization.