Posted by Dave T on November 02, 2009 at 15:14:14:
In Reply to: First Time Homebuyer Tax Credit Scenario posted by jimi on November 02, 2009 at 08:51:05:
In the case of a married couple, both spouses may not have owned a primary residence within the past three years to qualify as first time home buyers.
Since the former husband had ownership interest in a principal residence within the prior three years, and the taxpayers were legally married, neither spouse may take the first-time homebuyer credit. Marriage (and legal separation) imputes ownership of a previous home upon the other spouse.
The ex-wife may not take the credit even if she filed on a separate return during the past three years. Mrs. Ex may want to discuss with her tax advisor how IRC Section 36(c)(1) applies to her specific circumstances.