Jan. 18, 2010
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 a question to ask George & Chuck or fax it to 713-978-6684. 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.