No Homebuyer Credit Where Wife Still Had Interest In Old Home.

In this case, the court held that the petitioners, a married couple, couldn't claim a first time homebuyer credit.  While the home at issue was purchased more than three years after the wife quitclaimed her interest in her old home to her children, the court determined that she still held onto the benefits and burdens of ownership of the transferred home.  The court noted that she continued to reside in the old home until the new home was acquired, paid associated expenses and reported rental activity associated with the transferred home after it had been quitclaimed to the children.  While the husband qualified as a first-time homebuyer, both spouses needed to qualify for the credit to be available.  Douglas v. Comr., T.C. Memo. 2014-104.