First Time Home Buyer Credit

[jrollo]

Fact Pattern:

Taxpayer inherits one half of father's home/ stepmother resides in home and owns the other half.

Stepmother dies and other half of house is willed to her children (TP stepbrother and sister)

TP purchases other half of home and moves into the home.

Before the purchase TP was renting another home, and has not owned a home in the past 3 years.

May the TP take the First Time Home Buy Credit for the amount he purchase the home?

I believe he can take the credit since this became his Principal Residence. However, I would greatly appreciate any input one may have on this issue

Thank you,

Jeff

[Lion EA]

I saw IRS clarifications on situations where part of the house was acquired via inheritance, probably on the IRS website or in an NAEA e-newsletter. Haven't had that situation, so can't give you details but know details are out there. You'll really need to research your situation.

[chuck]

I agree unless someone has come across this type of situation researching is the way to go. IRS call might lead you to a quick solution as well.

[jainen]

>>TP purchases other half of home <<

Do you mean he purchased, like, the East Sitting Room with attached guest suites, or was it a 50% interest in the whole thing? And is he only going to live in the purchased half as his principal residence, so the other property that just by coincidence happens to be in exactly the same place, that's his second home instead of his principal residence? And in what way is your scenario different (in terms of claiming this credit) from a taxpayer who inherits a small house and builds a second story on it?

[jrollo]

Thanks everyone for your replies. Have read everything I could find on the matter. I know in states that you cannot take a deduction if you inherited the house, but I have not been able to find anything on this situation. Next step is to call the IRS. After I find the correct answer I will post it.

Thanks again

Jeff