Have a client that has owned his home for a few years. He got married in October and they transferred half the house to his new wife, she is now on the mortgage. Prior to the marriage she lived at home. Would this qualify her as a first time home buyer for the tax credit?
“Would this qualify her as a first time home buyer”
I cannot even imagine how his lawyer and her lawyer drafted that purchase agreement where the prospective fiance purchased an interest in the property with her own money which then is to become joint property.
Presumably it is quite a long document.
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Hi Joe Joe
Assuming the lawyer knew what he/she was doing, didn’t answer the question.
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You may want to research a topic called “attribution rules”
Thank you.
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Setting aside any other tax implications, the wife would not qualify for the First Time Homebuyer’s Tax Credit because the home does not meet the definition of a qualifying home under paragraph 118.05(1).
Specifically; In order to meet the definition of a qualifying home neither the individual (wife) or the individual’s spouse (husband) could have owned and lived in a home in the year of purchase or in the 4 calendar years prior to purchase. She is disqualified because her husband owned a home while they were married.
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Thank you. Stay safe.