Do you qualify for the First Time Homebuyer Tax Credit?
Here in South Dakota, there's been some confusion - here's why...
IRS vs SD First-time Homebuyer
In South Dakota, you qualify for the "first-time homebuyer" program if you have not owned a home that is permanently attached within the past 3 years. So if you have been living in a mobile home on a rented lot, congratulations! As long as you meet the income and purchase price limitations, you are good to go to receive the discounted rates and benefits of this program!
But in claiming the tax credit, the IRS looks at things differently....
According to Form 5405 (the form used to claim the income tax credit), you are eligible to receive the credit if you did not own any other "main home" in the past 3 years. It then goes on the classify a main home as: "the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence."
So if you have lived in a mobile home the past 3 years, you would qualify for the South Dakota First-time Homebuyer Program, but NOT the $8,000 tax credit.
Sorry.
Back to 2009 income tax credit
Equal Housing Opportunity 