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 a 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!
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
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.
If they believe it can be unlikely a borrower will pay them whatever they owe then they are going to simply not loan them money in the first place.
Also, in case you fail to make payment about the schedule output deadlines,
you’ll also have to pay the penalty for late payment.