Date posted: August 7, 2009
When my father died in February 2009, I inherited his home and assumed the mortgage. I have never owned a home before. Can I take the first-time homebuyer credit?
When my father died in February 2009, I inherited his home and assumed the mortgage. I have never owned a home before. Can I take the first-time homebuyer credit?
— Submitted by Paul
No. You qualify as a first-time homebuyer because you have not owned a home within the previous 3 years. However, there must be a purchase. The tax law says a purchase is any acquisition other than acquiring the home from a related person where the basis of the property is determined by the stepped-up basis rule for inheritances. Since you inherited the home from your father and your basis in the residence is its estate tax value (its value on the date of your father's death), you cannot claim the first-time homebuyer credit.
