FTHB Credit

[Booger]

Hello, everyone. I THINK under both the following scenarios neither would qualify for either the first-time

buyer or the long-term credit. Please let me know what you think.

1. On the joint return, the MAGI is high enough to preclude the couple qualifying for the long-term credit.

If filing status is MFS, then one spouse would qualify. Can the spouse take the long-term credit if filing

separately?

2. Married couple divorced in 2008, and one spouse bought a new home in March, 2009. Can she take the FTHB

credit?

Thanks for the input.

Booger

[OldJack]

>>I THINK under both the following scenarios neither would qualify <<

I agree with your thinking.

[Booger]

>>I THINK under both the following scenarios neither would qualify <<

I agree with your thinking.

Thanks, Old Jack. The one that's a little perplexing is #2. The ex-wife did not have any ownership interest

in the home which she and her ex shared. However, the scenarios outlined under the IRS website state that

ownership is imputed to both spouses. The d*a*m*n real estate agent told her she qualified....now I have

to tell her the truth.

Bad Guy Booger

[Cathy]

Booger,

Before you tell your client anything:

My first inclination was also no to both questions and still is no to question #1,

However, to question #2: Instructions for Form 5405 state: "You (and your spouse if married) .....". Key here is spouse, if married...

Cathy