What’s in the $8000 first time home buyer tax credit for seasoned investors?
Syndicated real estate columnist Kenneth Harney reports that the IRS has interpreted the tax credit rules to allow unmarried co-purchasers, including investors, to buy one to four unit buildings.
The tax credit is simply allocated to the buyer who qualifies for the credit and will live in one of the units while the others are rented out.
Of course, as we’ve discussed here, those same first time home buyers can now “monetize” the tax credit, using it as a cash advance to buy down interest rates, pay closing fees or add to their down payment.
It goes without saying that the buyer who qualifies for the credit is required to live in one of the units for at least three years.
As always, the amount of the tax credit is equal to 10 percent of the value of the portion of the building she owns up to $8000.