Full question:
we have a business under a C corporation and plan to purchase a residential propert with a house on it with seller financing. as a corporation would we be able to get that $8,000.00 stimulus as a first time home buyer? the business operates on another island.
- Category: Taxes
- Date:
- State: Hawaii
Answer:
The first-time homebuyer credit is claimed on a individuals's income tax return and the property must be used as a principal residence of the taxpayer claiming the credit. Section 36(c)(1) defines “first-time homebuyer” as any individual (and if married, the individual’s spouse) who has not had an ownership interest in any principal residence during the three-year period ending onthe date of the purchase of the principal residence. Therefore, it is not applicable to corporations.
If any of the following describe you, you cannot take the credit, even if you buy a new home:
Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.
You buy your home from a close relative, including your spouse, parent, grandparent, child or grandchild, as well as certain partnerships and corporations.
You do not use the home as your principal residence.
You sell your home before the end of the year.
You are a nonresident alien.
You purchase a home outside the U.S. or in a U.S. territory
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.
For further discussion, please see:
http://www.irs.gov/newsroom/article/0,,id=206291,00.html
http://www.irs.gov/pub/irs-pdf/f5405.pdf
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
