QUESTION:

I bought my present home in 1965 and still live in it. My brother is selling his home because he needs the funds to pay for nursing home expenses. His children are selling it since he has no control of his memory and needs 24 hour care in the present nursing home that costs $5000 a month.

I want to buy it and I wonder if there is any way to get this $6000 tax break when I buy his home and we want to keep his home in the family.

ANSWERS:

Assuming your income isn't too high to qualify, you can get the $6,500 credit if you buy and make the house your principal residence. It's clear from your note that you have owned and lived in your current home for at least five of the previous eight years. So, if you buy a new principal residence by April 30 (binding contract) and close by June 30, you can qualify. The prohibition against buying from a relative does not apply to siblings but to ancestors and lineal descendants including parents, grandparents, children, grandchildren, etc., and their spouses.

Other updates Tax Credit:

http://fullsailmorthomebuyerupdate2010.blogspot.com/


By Kevin McCormally

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