For Married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first time homebuyer tax credit.

 

HOWEVER…Unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter.

 

Additionally…Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first time home buyer.

 

So…for any financially or credit challenged first-time home buyers…it’s time to start working on your parents or grandparents to help you purchase your first home! They can even co-sign and be in title and you can still receive the tax credit! Win-win!