Selling to Fiancee with a Sub2 - 8000 new home buyer credit?

[S Brickman]

Let me preface this questions with this fact: I am in no way trying to do something illegal or scam anything, just trying to see if we are able to take advantage of the new 8000 credit.

Ok, so I purchased a home in June 2007 by myself, only me on the title, deed, mortgage,etc. I have a fiancee who has never purchased a home and we are trying to figure out if the home goes into her name if she would be able to claim the credit.

(Note: we are not planning on getting married until 2010 therefore would continue to file separate and not be legally joined in anyway)thus allowing for her to claim the credit on her 09 taxes,etc

The part that we are unsure of is that fact that since I am the one who the mortgage is through, I know I would have to "sell" it to her.

From reading this site, and others as well as some research I know we can do a subject to existing mortgage, just not sure of the exact steps to proceed to make sure everything works out.

Pretty sure it is not illegal in Arizona where we are located.

Since we are not strangers entering into a business deal, all the resources I have read do not really help out in this situation. I just refinanced so would like to avoid as much of closing costs as possible instead of being dinged again in that area.

I know that my ramblings might be a bit confusing, but I would appreciate any help, advice or feedback you can provide.

Thank you!

[Shane Wilson]

Check with your CPA. They would know for sure. You can also google the form directly from the IRS website it'll have all the exclusions on it.

If she qualifies she'll only be able to claim up to $4000 or 10% of the purchase price whichever is less. Its $8,000 or 10% whichever is less if its a married couple.

[Nick J.]

let me clarify, Are you asking if you sell your house 'sub2' to your future ex-wife, you want to know if she will get the tax credit?

if thats your question, then I believe your reaching for the fences, if she buys the house both of you are living in 'Sub2', the loan stays in your name. You don't have to actually 'close' on the property at a title company.

If I read your question wrong, please re-ask, b/c thats how I understood it.