johnye[at]hotmail.com writes:

- quote -

It's carried over.

- quote -

Aside from the fact that neither of you would be able to
claim the mortgage interest deduction (she's not liable and
you're not paying), this would look to me like just a sham
transaction designed to reap the credit.

If you're truly looking to sell the property to her, talk to
a mortgage broker. There are amazing ways of legitimately
financing such a sale.

Phil Marti
Clarksburg, MD

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This Google Groups Beta is confusing; also, it seems to have
started a new thread when I didn't intend to....

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johnye[at]hotmail.com wrote:

- quote -

First, there *is* a provision that allows any "excess"
credit to carry forward to the next tax year.

Second, you'll find that there is also a provision that
*denies* the credit when a taxpayer [your Mom, in this case]
buys an otherwise qualifying house from a close relative
[you, her son, in this case]. Both of these provisions are
in IRC section 1400C.

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Yes, there is a carryover of this credit. However, you'll
also find out that the credit is not available when a
taxpayer buys an otherwise qualifying residence from a close
relative. Your Mom can't get the credit for a house she
buys from you, her son. These rules can be found in IRC
section 1400C.

Sorry about that.

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I have a few questions with how the law works when selling a
DC property to my mom.

First, there is this Federal Income Tax Credit for
First-Time D.C. Home Buyers and the max amount is $5000.
Can this credit be claimed almost like cash, that you don't
have to have enough liable taxes in order to have the $5000
deducted from it, and you will be refunded by the Fed at the
end if your liable tax is less than $5000, or it will be
treated as a left over credit for next year's taxes?

Second, if I sell the property to my mom, due to her limited
income for getting a loan and also paying the costs for
getting a loan, can I keep my existing mortgage under my
name, and she pays the mortgage through me?

Third, if the answer for question #2 is a no, is there a way
to retitle the property such that say 99% of the ownership
belongs to my mom, and therefore, she can claim the $5000
credit in question #1, and also, allow us to keep the
existing mortgage to avoid a new loan and its costs?

Thank you very much for your input.

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