The new $8k tax credit

I keep hearing that there is a new $8k tax credit for new home buyers. I have a friend in the following situation.

She is engaged to and has been living with a guy who owns his own home. Now, they are moving to a new location, and because it may take time to sell the old house, she is going to buy their next house based on her income/savings alone. So, this will qualify her for the credit, right?

Now, here's the kicker. They are planning to marry later this year, about six months after she purchases the house. Would their being married (and thus filing together) disrupt her plans to use the tax credit at the end of 2009, because HE owned a home?

Nothing? Buehler? Buehler?

Sorry 'bout the delay, Puck, been busy with other things.

The credit should be available to your friend. Not sure about if their being married will cause an issue, but if it does, the credit could be applied to the 2008 return (amended and refiled if necessary), as this credit is good for either year's return, for homes purchased before December 1, 2009.

Blankenship -- thanks! That's brilliant! So, she can still marry this year, but amend last year's tax return, even if she bought her home this year. Who thinks up this stuff? Reminds me of Wimpy, amended for modern times -- "I'll gladly take a deduction this year, for a house I purchase next year."

We're very concerned about getting this economy back on track. Concerned enough to do silly things like this. :)

I actually felt so guilty that our tax refund this year was so large (triple last year's due to major medical expenses, increased donations and a Hope education credit) that I actually attached a letter explaining the variance!

I bet they don't get that too often!

That we got a refund this time was surprising in and of itself. That it was large enough to eliminate any est. quarterly payments for this year was a pleasant change. Was able to offset the meager cap gains with a single tax loss harvest. I did resist sending the IRS a picture of my **** (fill in the blank ;)).

A couple of other things to mention, Puck - the credit is a maximum of $8,000 or 10% of the home purchase price, and it is not to be paid back as long as the homeowner lives in the home for 36 months. Also, for a single filer, there is an income limit of $75,000. Above that level, the credit begins to phase out.