New nuptials and the tax credit: Q&A
Q: Keith has never owned a home, but his new wife has within the past three years. Do they qualify for the tax credit?
A: Thanks for the great question, Keith! There are many people out there in the same situation.
I’m sorry to be the bearer of bad tidings, but the answer is no. If you’re a married couple, both you and your spouse must qualify as first time home buyers.
As your wife owned a house in the past 3 years and it was a principal residence, then I’m afraid you don’t qualify. And don’t try to get around it by filing separately to get some of the credit, the IRS will test the home ownership history of both you and your spouse.
That said, there are a lot of benefits to home ownership that can still save you money!
You can deduct the interest you pay on your mortgage, and there may be more benefits for you as a married couple so to be sure that you speak to a tax professional — you can never be too careful when it comes to your taxes, to make sure that you’re getting everything you can and you know where you stand.
And congratulations to you and your wife on getting married and taking that next step into owning a home together!
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