More Guidance Offered on Homebuyer Credits

July 9, 2010

The IRS has recently released numerous Information Letters that were written in response to questions they received on the homebuyer credits.  We have them in the annotation list under "Taxation," but collected them here for easier research purposes.  You will note that IRS takes the position that related party sales are barred, but fails to provide any reasoning for their position or analysis of the statutory language.  A legitimate question exists as to whether the IRS position on that point is correct.

Here is a summary of the recent Information Letters:

  1. IRS Info. 2010-0101 (Apr. 19, 2010)(foreign ag workers on H2A visas are exempt from social security and medicare tax and are not subject to withholding, but amounts paid to them must be reported on Form 1099-Misc if amount paid during the year is $600 or more). 
  2. IRS Info. 2010-0100 (Apr. 26, 2010)(for purposes of the long-term homeowner credit, married couple is considered to own their residence even if title is only in one of their names). 
  3. IRS Info. 2010-0093 (Mar. 29, 2010)(home purchased before Nov. 7, 2009 doesn't qualify taxpayer for first-time homebuyer tax credit). 
  4. IRS Info. 2010-0092 (Apr. 15, 2010)(IRS again takes position that related party sales are disallowed for purposes of the first-time homebuyer credit; no statutory analysis provided). 
  5. IRS. Info. 2010-0091 (Apr. 7, 2010)(IRS again takes the position, with no statutory analysis that purchases from relatives (including parents) are disallowed for purposes of the first-time homebuyer credit). 
  6. IRS Info. 2010-0088 (Apr. 7, 2010)(taxpayer eligible for 2008 version of first-time homebuyer credit (with recapture provision, rather than 2009 version, based on when home was purchased). 
  7. IRS Info. 2010-0086 (Apr. 6, 2010)(IRS again takes the position, with no statutory analysis, that purchases from relatives don't qualify for the first-time homebuyer tax credit). 
  8. IRS Info. 2010-0084 (Mar. 24, 2010)(couple's purchase of home for daughter not qualified for long-term homeowner credit; purchase occurred before effective date of credit). 
  9. IRS Info. 2010-0083 (Apr. 12, 2010)(wife entitled to first-time homebuyer tax credit for purchase of home with spouse from wife's father-in law because purchase occurred before Nov. 7, 2009). 
  10. IRS Infor. 2010-0107 (Apr. 12, 2010)(home purchased before Nov. 7, 2009, does not qualify for long-term homeowner tax credit). 
  11. IRS Info. 2010-0106 (Apr. 1, 2010)(purchase of home from taxpayer's parents does not qualify for first-time homebuyer credit; no statutory analysis provided). 
  12. IRS Info. 2010-0103 (Apr. 14, 2010)(married couple not eligible for first-time homebuyer tax credit because wife owned principal residence in prior three years, and can't take long-term homeowner credit because husband didn't reside in wife's home for long-enough period of time). 
  13. IRS Info. 2010-0102 (Mar. 31, 2010)(with no analysis of the statute, IRS says that purchases from certain relatives do not qualify for the first-time homebuyer tax credit). 
  14. IRS Infor. 2010-0062 (Mar. 18, 2010)(taxpayer not eligible for long-term homeowner tax credit because home purchased before Nov. 7, 2009).
  15. IRS Info. 2010-0072 (Mar. 25, 2010)(IRS takes the position, without analysis of I.R.C. Sec. 36(c)(3), that taxpayer does not qualify for first-time homebuyer tax credit upon purchase of home from father's estate, unless the sale is in satisfaction of a pecuniary bequest). 
  16. IRS Info. 2010-0073 (Apr. 9, 2010)(IRS again takes the position, without analysis of the statute, that I.R.C. Sec. 36 bars home purchases from taxpayer's parents as being eligible for the first-time homebuyer tax credit). 
  17. IRS Info. 2010-0078 (Apr. 16, 2010)(taxpayer fails to qualify for long-term homeowner tax credit because home purchased before credit's effective date of November 7, 2009). 
  18. IRS Info. 2010-0055 (Mar. 10, 2010)(married couple did not qualify for long-term homeowner credit; wife did not reside in current home for five consecutive years in eight year period preceding purchase).
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