I have an income property our daughter rents from us. I wanted to sell it to her last year but was told that she was excluded from the tax credit because she is immediate family. Is this still the case under the new housing tax credit law?
The first time home buyer credit was extended last week. Furthermore, as discussed in the Managing Your Money section of boston.com last week, the bill was expanded to include those people that already own a home. However, the new law does not adjust the rules relating to sales to related parties. Under both the original law and the extended law, sales of properties between related parties are not eligible for the housing tax credit. So, if you sell the property to your daughter, she will not be able to claim the $8,000 credit.
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