Family trust first ime homebuyer

[bigdadder]

The son of a family trust member purchased a home from the business trust.

Does the trust take on the role of a related person? Or would you file for the

$8000 credit. Thanks for your thoughts.

Bigdadder

[TAXBILLY]

Could you elaborate as to what you mean by a business trust?

taxbilly

[bigdadder]

The trust was set up in 1988 by grandfather who owned an elecrical contracting business.

All paper work shows purchase from the trust signed by trustees.

[jklcpa]

You haven't said exactly in what capacity the parents of the purchaser, and the purchaser himself, are related to this trust. You said the purchaser is the son of a "member". By "member" do you mean that this parent is a fiduciary or beneficiary of the family trust?

The instructions for the form direct people to Pub 544 (not authoritative), chapter 2 in the section "Sales to related parties". It has a list of related parties. Perhaps that will help you make a decision.