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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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need advise asap about tax credit
I am buying from my aunt and I am hearing you can't buy from family.
Is an Aunt considered in this category.
•Home purchases from relatives of the taxpayer or the taxpayer’s spouse do not qualify for the tax credit. The IRS defines relatives as ancestors (parent, grandparent, etc.), lineal descendants (child, grandchildren, etc.) and spouses.
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Posted 4/29/10 10:15 AM  |
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Nifheim
allo
Member since 1/09 5476 total posts
Name:
Jennifer
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Re: need advise asap about tax credit
i am pretty sure any relative you buy from you will not allow you to get the tax credit
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| Posted 4/29/10 10:36 AM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: need advise asap about tax credit
Are there any CPA's/lawyers/real estate people out there who know this answer?
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| Posted 4/29/10 10:38 AM |
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dexsmom
LIF Infant
Member since 1/10 321 total posts
Name:
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Re: need advise asap about tax credit
I bought from my mom, and I closed in October, and I got the tax credit. Never even heard of this.
It isn't like I got a "deal" on the house...worked like any other home purchase.
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| Posted 4/29/10 10:46 AM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: need advise asap about tax credit
Im reading on the site that states the information I posted.
Seems like its all a bit confusing
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| Posted 4/29/10 10:48 AM |
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dexsmom
LIF Infant
Member since 1/10 321 total posts
Name:
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Re: need advise asap about tax credit
And not one person told us that we couldn't get the tax credit...so I am not sure. They "reviewed" my application for a while....from October until a month ago!! So...not sure how they missed that one!
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| Posted 4/29/10 10:50 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: need advise asap about tax credit
While I would think buying from an Aunt could be considered family, I'd submit it anyways. What is the worst that's going to happen? They deny it?
The way I look at it, I owe this government nothing and I will take every penny I am entitled to.
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| Posted 4/29/10 11:02 AM |
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MrsO
Big Brothers to Be
Member since 1/07 4521 total posts
Name:
Maureen
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Re: need advise asap about tax credit
I found this on the irs website
Who cannot take the credit?
A. If any of the following describe you, you cannot take the credit, even if you buy a new home:
Your income exceeds the phase-out range.
You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You are a nonresident alien.
Also, if the home is purchased after November 6, 2009, and you are a minor, you are generally barred from claiming the credit. To qualify for the credit, a purchaser must be at least 18 years of age on the date of purchase. For a married couple, only one spouse must meet this age requirement. A dependent is not eligible for the credit, regardless of age. For more information on this, please see the Q and A "Can a minor buy a home and claim the credit?" (1/27/10)
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| Posted 4/29/10 11:20 AM |
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MrsMcNuzzi
LIF Infant
Member since 5/08 278 total posts
Name:
Lori
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Re: need advise asap about tax credit
i recently bought a house from my aunt and because of that I did not qualify for the tax credit.
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| Posted 4/29/10 11:25 AM |
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MrsMcNuzzi
LIF Infant
Member since 5/08 278 total posts
Name:
Lori
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Re: need advise asap about tax credit
Posted by ave1024
While I would think buying from an Aunt could be considered family, I'd submit it anyways. What is the worst that's going to happen? They deny it?
The way I look at it, I owe this government nothing and I will take every penny I am entitled to.
this is how I felt too and when I told my accountant that I wanted to file for it anyway and let them deny me he said I was definitely not going to get it and it was going to seriously delay my refund (we were getting a large sum back already without the tax credit)
so based on that I didn't file for it. and what he said about the wait was true. My sister filed her taxes the same day and filed for the tax credit. She JUST got her federal refund last week - we had ours about 2 weeks after we filed.
We filed back in februrary
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| Posted 4/29/10 11:27 AM |
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Salason
♥
Member since 6/05 9878 total posts
Name:
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Re: need advise asap about tax credit
they've gotten a lot tougher on vetting who gets it because there was a lot of fraud going on with it...
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| Posted 4/29/10 11:44 AM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: need advise asap about tax credit
Uggh the lovely IRS. I guess its not going to work. i dont want to file if I can't get the credit cause I feel like it can be opening a can of worms
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| Posted 4/29/10 11:49 AM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: need advise asap about tax credit
there's a ton of fraud going on with this so they are looking much harder into who you buy from. since it doesn't list an aunt as a close family memeber,y uo can just call the IRS directly and ask. they are usually very helpful.
As for the poster who mentioned they bought from their mother- They will catch on to it eventually, since they have launched a program to investigate all purchases past and present. you will be asked to give the $ back and you may even be charged interest on the $.
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| Posted 4/29/10 11:49 AM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: need advise asap about tax credit
this is exactly what I dont want to happen. i dont want to think im getting the money and then have to give it back
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| Posted 4/29/10 11:57 AM |
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Katareen
5,000 Posts!
Member since 4/10 7180 total posts
Name:
Katherine
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Re: need advise asap about tax credit
Do you have a different last name? How would the IRS even know this was your Aunt?
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| Posted 4/29/10 12:01 PM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: need advise asap about tax credit
yes we do have different last names. I never like to take chances with the IRS that is why I am concerned. Id rather know for sure before.
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| Posted 4/29/10 12:02 PM |
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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: need advise asap about tax credit
Posted by HeatherRose
As for the poster who mentioned they bought from their mother- They will catch on to it eventually, since they have launched a program to investigate all purchases past and present. you will be asked to give the $ back and you may even be charged interest on the $.
I'm SOOOOO glad to hear this. Someone I know took the credit after they purchased from their grandparents. I told them that they were not able to get the credit because of buying from family and they did it anyway. They said it was free money and they were entitled to it.
TICKS me off bc it is not free money....it's MY tax money just given to them when I got the tax credit the year before and have to pay mine back. 
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| Posted 4/29/10 12:10 PM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: need advise asap about tax credit
yes to me its not worth the hassle of dealing with the IRS. I've been audited once before and its not fun.
So im going with the conclusion if I buy from my aunt i can not get the tax credit.
Any objections. LOL
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| Posted 4/29/10 12:19 PM |
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mavaesq
LIF Infant
Member since 6/09 126 total posts
Name:
Valerie
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Re: need advise asap about tax credit
I am an attorney - hopefully I can help:
The IRS defines “relative”, on its documentation as a parent, child, grandparent or grandchild. Siblings, aunts or uncles are not defined within this definition. However, buyers are referred to IRS Pub. 544.
IRS Pub. 544 defines "close relative" as "members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc.), and lineal descendants (children, grandchildren, etc.)."
I would argue for a client that you can buy a home from an aunt, uncle, niece or nephew and may still qualify for the credit.
That being said - you MUST be in contract today in order to qualify.
Don't let this deter you from buying a home however, it's still a "Buyer's market" 8,000 credit or not.
Best of luck to you!
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| Posted 4/29/10 12:56 PM |
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jillee03
LIF Adult
Member since 8/05 953 total posts
Name:
Jill
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Re: need advise asap about tax credit
Thanks for that info. But its still "iffy" persay. So they could give it to you or not give it to you?
Also when you say I have to be in contract today. Isn't it the 30th??
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| Posted 4/29/10 1:19 PM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: need advise asap about tax credit
Posted by mavaesq
I am an attorney - hopefully I can help:
The IRS defines “relative”, on its documentation as a parent, child, grandparent or grandchild. Siblings, aunts or uncles are not defined within this definition. However, buyers are referred to IRS Pub. 544.
IRS Pub. 544 defines "close relative" as "members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc.), and lineal descendants (children, grandchildren, etc.)."
I would argue for a client that you can buy a home from an aunt, uncle, niece or nephew and may still qualify for the credit.
That being said - you MUST be in contract today in order to qualify.
Don't let this deter you from buying a home however, it's still a "Buyer's market" 8,000 credit or not.
Best of luck to you!
based on this it sounds like you can!! thats great news!!
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| Posted 4/29/10 2:10 PM |
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MrsO
Big Brothers to Be
Member since 1/07 4521 total posts
Name:
Maureen
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Re: need advise asap about tax credit
An aunt is not a close relative so that would not disqualify you
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| Posted 4/29/10 2:17 PM |
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TheWhiteRabbit
Thru the rabbit hole!
Member since 7/06 4412 total posts
Name:
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Re: need advise asap about tax credit
Posted by dexsmom
I bought from my mom, and I closed in October, and I got the tax credit. Never even heard of this.
It isn't like I got a "deal" on the house...worked like any other home purchase.
It doesn't matter if you paid market value, you are not allowed to take the credit. You can amend it to fix it and pay it back as it was a mistake at the time.
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| Posted 4/29/10 2:19 PM |
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mavaesq
LIF Infant
Member since 6/09 126 total posts
Name:
Valerie
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Re: need advise asap about tax credit
Posted by jillee03
Thanks for that info. But its still "iffy" persay. So they could give it to you or not give it to you?
Also when you say I have to be in contract today. Isn't it the 30th??
You must be in contract "by the 30th"
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| Posted 4/29/10 2:54 PM |
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Ophelia
she's baaccckkkk ;)
Member since 5/06 23378 total posts
Name:
remember, when Gulliver traveled....
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Re: need advise asap about tax credit
Posted by mavaesq
I am an attorney - hopefully I can help:
The IRS defines “relative”, on its documentation as a parent, child, grandparent or grandchild. Siblings, aunts or uncles are not defined within this definition. However, buyers are referred to IRS Pub. 544.
IRS Pub. 544 defines "close relative" as "members of a family, including only brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc.), and lineal descendants (children, grandchildren, etc.)."
I would argue for a client that you can buy a home from an aunt, uncle, niece or nephew and may still qualify for the credit.
That being said - you MUST be in contract today in order to qualify.
Don't let this deter you from buying a home however, it's still a "Buyer's market" 8,000 credit or not.
Best of luck to you!
My DH is an accountant and he agrees with you. It does not mention anywhere in Pub 544 that an aunt or uncle is considered a 'close relative'. I think the OP definitely has a case to claim the credit. However, what mavaesq said is also correct, OP must be in contract on or by Apr 30 and must close on the property by June 30.
Also, when filing your tax return, you won't be able to electronically file due to the paperwork requirements which include sending in a copy of the signed HUD-1 or similar closing statement.
There has been tons of fraud with this credit and the IRS is just trying to cut down on it.
Good luck!
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| Posted 4/29/10 8:18 PM |
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