I'm buying my first home and want and need the tax credit but I'm buying my parent's house and tax man said I can't get a tax credit cause I'm buying from family member. Any ideas?
Buying from your parents is considered related-party transaction so the IRS won't allow you to take the First-Time Homebuyer Tax Credit even if you pay fair market value for the house. If you want the credit, buy a house from a non-relative.
Yeah, I have 2 ideas:
1. Buy a different house instead. OR
2. Give up on the tax credit because you don't qualify. (sorry, but the laws on this are black and white, you don't get the credit if you buy from family. there are no loopholes.)
None. Buying from your parents doesn't qualify.
The only alternative is to buy a different house from a non-relative.
You are disqualified if buying from an immediate family member.
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