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Bought a house in Florida in 2009 in my sons name so he could file for the $8000 first time buyers credit which we received already. Both me and my son are living in that house new and plan to stay here. I homesteaded the house in my sons name for 2010.
I own another house the house we moved from its in my name bought it maybe 20yrs ago at this time that house is homesteaded in my name. My plan is to rent that house out the one in my name but once I rent it I loose my homestead. Since I've owned and lived in the home so long my taxes are very very low there.
Florida has a homestead portability law that lets you move your homesteaded tax deductions with you when you move. Since I'm lived in the home so long i have a lot of portability built up in it and want to figure out a way I can transfer it to the new house in my son’s name and take avantage of all that portability.
I called the county tax dept. explained my scenario to them and was told that i could retitle the new house to both me and my sons name and would be able move over and take advantage of the full homestead from the old house
My question is what affect will that have on the $8000 first time buyer’s credit will my son be expected to pay it back?
We both plan to live and stay in the house for over 3yrs.
Also we have no mortgage on either home
Here's info from the IRS website. Since the home will still be your son's principal residence, it appears there is no repayment requirement. You should consult with a tax professional to verify.
Q. When must I pay back the credit for the home I purchased in 2009?
A. Generally, there is no requirement to pay back the credit for a principal residence purchased in 2009 or early 2010. The obligation to repay the credit arises only if the home ceases to be your principal residence within 36 months from the date of purchase. The full amount of the credit received becomes due on the return for the year the home ceased being your principal residence.
I called the IRS before I did it and they explained to me the proper way to do it so i could qualify for the tax credit and if hes going to be living in the home for the next few years then were following the rules of the tax credit
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