Date posted: May 6, 2009
My husband and I rent a home we own to my brother and his wife. If we sell the home to them at market value, can they claim the first-time homebuyer credit?
My husband and I rent a home we own to my brother and his wife. If we sell the home to them at market value, can they claim the first-time homebuyer credit?
— Submitted by Taryn
If they qualify as first-time homebuyers (they haven’t owned a home within the past 3 years) and their income is below set levels, they can claim a tax credit of 10% of the purchase price, up to a top credit of $8,000. They must close the sale by November 30, 2009. There is no bar to the credit even though the purchase is from a relative.
