Many times when working with people looking to purchase in the Basking Ridge, NJ area I encounter buyers who are getting help from their family to buy their first home. I wanted to make sure that you have all the information you need to make the best decision about this very important investment!
Buyers who purchase a property with someone else may wonder about their ability to claim the homebuyer tax credit. The Internal Revenue Service (IRS) recently issued tax credit eligibility guidelines for co-borrowers purchasing a home.
One of the most commonly seen situations is when a parent co-signs their child’s mortgage and both names appear on the note. If the parent owns a home, they are not eligible for any portion of the credit. However, if the home-buying child has not owned a home in the previous three years and meets the other requirements, he or she can qualify for the full $8,000 first-time buyer tax credit.
In other cases, unmarried individuals purchase a home to live in together. If only one of the co-borrowers meets all of the requirements, the eligible buyer may claim the full tax credit.
Click here to visit the homebuyer tax credit section on the IRS Web site. You can also contact me directly for additional questions. Click here to start your search in Bedminster, or here to start your search in Basking Ridge. I also cover surrounding areas and have contacts all over the state for areas in other counties.
