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Discussion:FTHC: Long-time resident (renters then owners)

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Discussion Forum Index --> Advanced Tax Questions --> FTHC: Long-time resident (renters then owners)


Discussion Forum Index --> Tax Questions --> FTHC: Long-time resident (renters then owners)

Hwcasey12 (talk|edits) said:

14 October 2011
I think I have a unique situation that I could not find anyone discussing previously.

I have a couple who were residents of a home for seven years prior to purchasing a house on August 11th, 2009. They rented the house the first four years, then purchased it and lived their as owners the last three.

They were clearly residents of one home for 5 of the 8 previous years, but did not own the home the whole time.

Thoughts? Thanks!

Solomon (talk|edits) said:

14 October 2011
§36(c)(6)

"Exception for long-time residents of same principal residence

In the case of an individual (and, if married, such individual’s spouse) who has owned and used the same residence as such individual’s principal residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence, such individual shall be treated as a first-time homebuyer for purposes of this section with respect to the purchase of such subsequent residence."

Hwcasey12 (talk|edits) said:

14 October 2011
I have read that part of the code about 10 times. This part is what is keeping me in limbo

"who has owned and used the same residence"

Must they have owned it the whole time (5-consecutive years)?

Solomon (talk|edits) said:

14 October 2011
Yes - just accept "owned and used" as a literal reading in this case.

Hwcasey12 (talk|edits) said:

14 October 2011
I agree. Just thought I would make sure I didn't have tunnel vision on this one. Just trying to make every effort for my client.

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