Federal first-time homebuyer tax credit
Answers to real estate questions as appearing
in the Houston Chronicle
By george stephens, CRB, AND Charles J. "Chuck" Jacobus, JD
Dear George: Do you have to get a mortgage loan to qualify for either the $8,000 first-time homebuyer tax credit or the $6,500 long-time resident credit? I'm buying a home and may pay cash.
Answer: No, you don't have to acquire a mortgage loan. Cash purchases are allowed. Find more information at IRS.gov.
Dear George: A friend of mine is an Australian citizen who has legally worked in the United States for the past 3 years and files a U.S. tax return. He's never owned a home. Is he eligible for the first-time homebuyer tax credit?
Answer: Maybe. The IRS states: "Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase." Your friend should determine if he meets the IRS definition of nonresident alien, which he can read on page 4 of IRS Publication 519, U.S. Tax Guide for Aliens.
E-mail your question to "Ask George & Chuck" or fax it to 281/596-7591. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
George Stephens, CRB, is the broker of ERA Stephens Properties. He is licensed as a mortgage broker in Texas and a real estate broker in Texas, Georgia, and Massachusetts.
Charles J. Jacobus, JD, is board certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law, and the author of Texas Real Estate Law and Texas Real Estate, both published by Thomson Publishing. He also teaches at Champions School of Real Estate and Houston Community College, and is an adjunct professor at the University of Houston Law Center.
George and Chuck are co-authors of Texas
Real Estate Brokerage and Law of Agency published by Thomson Publishing.
