First Time Home buyer-estate home sale -
8/3/09
at 4:37 PM
I may have missed this topic in an earlier post, but just to clarify: Form 5405 and other reference material does not list an estate as a related party. Therefore, if a person who is not a beneficiary of the estate and meets all of the other first time rules purchases a home from the estate, does he or she quality for the credit?
RE: First Time Home buyer-estate home sale -
8/20/09
at 11:24 AM
what there are 3 beneficiaries of an estate and one of them purchases the remaining 2/3rd shares from the other two based on the appraised value of the property. Could that qualify?
>>one of them purchases the remaining 2/3rd shares from the other two <<
In states with laws similar to California's Prop 13, this arrangement may not avoid reassessment of property taxes. Ask a qualified attorney if the estate needs to handle the transfer in a specific way.
RE: First Time Home buyer-estate home sale -
11/3/09
at 7:34 PM
Does anyone have a definitive answer to dhita's question? I have a similar situation where a granddaughter who is not a beneficiary to her grandmother's estate desires to buy Granny's house from the estate (her father and several uncles and aunts)? Is the estate a "related party" or not?
RE: First Time Home buyer-estate home sale -
11/6/09
at 9:58 AM
When the buyer was already living there and owned a fraction of the house, then she has an ownership interest in her principal residence and cannot use the FTHB credit. If she was not living there.... The IRS does have FAQs that cover situations involving inheritance as well as purchasing from an estate &/or buying out beneficiaries. See if one of their examples fits your circumstances.
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