First Time Homebuyer from mother's estate

[NECPA in NEBRASKA]

My client is buying her deceased mother's house from the estate. I have researched it and it looks like she does not qualify for the credit. The realtor told her that she will qualify. The will stated that her mother's property would go to her children. It also stated that the house had to be sold. Then they split the proceeds. She says that since she has a paper stating that she is buying it from the estate, that it will qualify her for the credit. I would really like to be wrong, but I don't see a way for this to work. If I am wrong, please let me know.

Thanks!

Bonnie

[imjulier]

I can't believe an estate would make it an unrelated sale so I agree with you. If you haven't already, look at instructions for form 5405 which refer you to pub 544 which is clear that if you are the executor or beneficiary of an estate, you are a related party. My interpretation.

Julie

[kcjenkins]

I agree, When you are either the executor or a beneficiary of an estate, you are a related party in any transaction with the estate.

[NECPA in NEBRASKA]

Thanksm KC and Julie. She was fine with the answer, but was just hoping to be able to qualify for the $8,000.