Taxpayer asks:
I moved 3 years ago and am renting a house that I own. I’m not able to file single head of household because I don’t live in the only home I own. Would I qualify for the tax credit?
Thanks
Taxgirl says:
As I understand your question, you are wondering if you would qualify for the homebuyer’s credit since you currently rent out property that you own.
If you were to buy a new home this year, you might qualify for the credit. The IRS defines a first time homebuyer as a taxpayer who has not owned another principal residence at any time during the three years prior to the date of purchase. If the property has been purely a rental property and not your principal residence, then I would say that you would not be disqualified. However, be prepared to back up your residency claims – hopefully, you’ve been reporting rental income for the past three years!
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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HOH status has nothing to do with home ownership
I don’t understand the whole “single head of household” filing status. You are either single, or HOH. You cannot be both. Single means that you are filing a tax return by yourself (regardless of whether or not you claim your exemption). HOH means you are claiming other dependents on your tax return or have a qualifying non dependent (QND). I wish people would get this straight. It saves a headache in the long run.