Home Buyer Credit

[Margaret CPA in OH]

Client is physician and family who owned a home in Maine from May 2005 until July 2009 then relocated to Missouri and rented until June 2010 when they closed on another house having a binding contract as of March 2010. I am thinking they don't quite fit the criteria of "previously owned and used the same main home as your main home for any 5-consecutive-year period during the 8-year period ending on the date you purchased your new main home."

I think, following the letter of this phrase, they do not qualify because of the break in between the sale of the Maine/main home and the purchase (even with the binding contract in March) of the Missouri main home.

Other opinions?

[Gail in Virginia]

The break does not present a problem - that is why the law phrased it as "any 5-consecutive-year period during the 8-year period." However, from May 2005 until July 2009 is only a little over 4 years. They do have to own a home for 5 consecutive years sometime during the 8 years before the purchase of the new house.

[Margaret CPA in OH]

Yeah, that's my real problem. Had they been closer, it's likely they could have held on until the new purchase but who wants to be paying a mortgage on and empty house in Maine and rent in Missouri while trying to find another home in a totally new area? They won't be happy but it is what it is. And she is a physician who had medical school loans forgiven by working in a low income clinic for 5 years and is making a whole lot more than I am now.

I know my personal opinions shouldn't be a factor but I have trouble feeling for her and others when my own son missed the cutoff by 2 weeks because the seller dawdled. He makes about 30% of her wages and really could have used the money. Off the soapbox now...