[bassfan11]

Hoping someone knowledgeable or have experience with the $8,000 first time home buyer credit can answer this question.

Let's say I'm moving from my current place of residence to Las Vegas. Due to me being out of state and current employment reasons, my home purchase has to be recorded on the loan as a second-home. This is my first home purchase ever. Not sure if the loan itself has any bearing on filing for the tax credit but here is my question:

If I officially become a NV resident before the qualifying closing date, does this qualify for purposes of the tax credit as being my primary residence? Does the loan papers have anything to do the tax credit in the first place? Exactly how do they determine your primary residence for purposes of this tax credit?

Any help would be appreciated. Thanks!

[BobKovacs]

The first line on the web page for the tax credit says that it must be your primary residence, so you won't qualify if you list it as a "second home".

[Be Happy 2]

It doesn't matter where you lived previously it MUST be your first home or you or your spouse haven't owned a home within the last 3 years.

So since this isn't your case you won't qualify.

www.federalhousingtaxcredit.com

This explains in detail.

[bassfan11]

Thanks for the replies all.

The thing is, this will indeed be my first (and only) home. I am officially moving there, becoming a resident and will be working there full-time. But because I do not yet have employment in that city/state, the pre-approval letter states it is a "second home" technically. Do they go on what is stated on the loan papers, or is it based on where I actually will live immediately after the home is purchased? How exactly do they determine primary residence?

In that link to www.federalhousingtaxcredit.com, the only clue it provides is that "The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences". I looked up this capital gain tax exclusion rule and the most I can get from it is that your house is a principal residence as long as you have lived in it 2 out of the last 5 years up to the sale, and it need not be concurrent.

Wha?

[olecapt]

Originally Posted by bassfan11

Thanks for the replies all.

The thing is, this will indeed be my first (and only) home. I am officially moving there, becoming a resident and will be working there full-time. But because I do not yet have employment in that city/state, the pre-approval letter states it is a "second home" technically. Do they go on what is stated on the loan papers, or is it based on where I actually will live immediately after the home is purchased? How exactly do they determine primary residence?

In that link to www.federalhousingtaxcredit.com, the only clue it provides is that "The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences". I looked up this capital gain tax exclusion rule and the most I can get from it is that your house is a principal residence as long as you have lived in it 2 out of the last 5 years up to the sale, and it need not be concurrent.

Wha?

Bassfan. You must not have owned any home anywhere for the last three years or you don't qualify. If you don't own a home anywhere else it can't be your second home.

Rentals don't count.

[bassfan11]

Originally Posted by olecapt

Bassfan. You must not have owned any home anywhere for the last three years or you don't qualify. If you don't own a home anywhere else it can't be your second home.

Rentals don't count.

Thanks for the reply olecapt. I have never owned any home. I believe the reason why it is listed as "second home" is that I don't live there full-time yet (only living there part-time looking for employment) and my current employment (in my current home state) is being used as the basis for income. If this is incorrect, and there is way it can be listed from the start as my main home, I'd appreciate a suggestion on how I can relate this to my real estate person.

As for the tax credit, I've read that there is no link between the loan papers and the tax filing. As long as it would be my primary residence asap after the home purchase is complete, it is my first home purchase, and I don't move or rent out the home for the next 3 years, all should be well. I sure hope so! Thanks again all.

[olecapt]

Originally Posted by bassfan11

Thanks for the reply olecapt. I have never owned any home. I believe the reason why it is listed as "second home" is that I don't live there full-time yet (only living there part-time looking for employment) and my current employment (in my current home state) is being used as the basis for income. If this is incorrect, and there is way it can be listed from the start as my main home, I'd appreciate a suggestion on how I can relate this to my real estate person.

As for the tax credit, I've read that there is no link between the loan papers and the tax filing. As long as it would be my primary residence asap after the home purchase is complete, it is my first home purchase, and I don't move or rent out the home for the next 3 years, all should be well. I sure hope so! Thanks again all.

You are now passed my knowledge level. I suggest you ask in the Mortgage section of CD. You need a knowledgable loan officer for that one.

[femdecoy]

Please do not take tax advice from a loan officer. I have heard so much bad tax information come out of some of their mouths through the years. Go straight to a proficient tax accountant to have your question answered.

[olecapt]

Originally Posted by femdecoy

Please do not take tax advice from a loan officer. I have heard so much bad tax information come out of some of their mouths through the years. Go straight to a proficient tax accountant to have your question answered.

Sorry I am a pretty good tax guy. This is not a tax guy question. It is a loan officer one. The only thing dumber than taking tax advice from a loan guy is taking loan advice from a tax guy.

[airics]

Exactly