Can you be considered a New home buyer if you own rental/income properties only? (investment, housing)

[volk2k]

I don't know if this makes any difference state to state.... but since I'm in Florida, I'll ask specifically about Florida.

Why I'm asking this question: The New Homeowner Tax credit classifies those who have not owned a home in the past 3 years as new buyers...which therefore allows them to be eligible for this credit.

Say I own a house that I am using for investment purposes only... I have NEVER homesteaded it... or let's say it was homesteaded at some point, but now that I've moved out and rent an apartment, I no longer claim that exemption (and it's been three years since that point).

Could I be classified as a New Home Buyer for the purposes of the Tax Credit? Is this just an "accounting" issue or is it a simple yes or no?

I can argue both sides of the fence here, but is there a clear answer?

Thanks!

[twojulybabies]

You own a home. There's your answer. Period.

It would be different if you sold off all properties and had been only renting for the last 3 years.

[MikeJaquish]

If you own rentals that have never been your primary residence, you may still qualify. (http://www.federalhousingtaxcredit.com/2009/faq.php#2 - broken link)

If you own rentals that have been your primary residence, but not within the last three years, you should ask the IRS.

[volk2k]

Originally Posted by MikeJaquish

If you own rentals that have never been your primary residence, you may still qualify. (http://www.federalhousingtaxcredit.com/2009/faq.php#2 - broken link)

If you own rentals that have been your primary residence, but not within the last three years, you should ask the IRS.

Thanks for the link to the FAQ!

"The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase."

"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."

Sounds like in either case, you'd be able to qualify.... and it sounds like even if the property is just sitting there as a "non-rental" that one would be eligible if you can prove it's not your principal residence!

Nothing a fancy-shmancy accountant couldn't do

Good to know!

[ronstack]

PRINCIPLE residence is probably determined by the address you used on your IRS tax returns. If for 3 years that address has been someone else's property, you may be ok.

[MsFancyPants]

Originally Posted by twojulybabies

You own a home. There's your answer. Period.

It would be different if you sold off all properties and had been only renting for the last 3 years.

I'm interested as to why you answered this way so emphatically (period!) when you were wrong? Is there something you read somewhere or heard somewhere? This sure sounds like you know what you're talking about but then if you read further down the thread you're obviously incorrect.