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david_l78644
New Member

Divorced & sold first home in 2018 per settlement. Purchased home as single Parent in 2019 with Trad IRA withdrawal. Did purchasing in my situation re-qualify me as FTHB?

 
4 Replies
CatinaT1
Expert Alumni

Divorced & sold first home in 2018 per settlement. Purchased home as single Parent in 2019 with Trad IRA withdrawal. Did purchasing in my situation re-qualify me as FTHB?

You are generally considered a first time home buyer if:

  • If you've never owned a home, or;
  • If you have not been an owner in a primary residence for at least three years leading up to your purchase

Regardless of this information, there is no credits or deductions available for First Time Home Buyers.

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dmertz
Level 15

Divorced & sold first home in 2018 per settlement. Purchased home as single Parent in 2019 with Trad IRA withdrawal. Did purchasing in my situation re-qualify me as FTHB?

"... for at least three years leading up to your purchase"

 

Two years, not three years.

david_l78644
New Member

Divorced & sold first home in 2018 per settlement. Purchased home as single Parent in 2019 with Trad IRA withdrawal. Did purchasing in my situation re-qualify me as FTHB?

Thanks for replies...I dont think I meet the qualification for tax purposes but it was more for the Traditional IRA withdrawal penalty credit...I withdrew last year and used part of these funds as down and closing for my home.

dmertz
Level 15

Divorced & sold first home in 2018 per settlement. Purchased home as single Parent in 2019 with Trad IRA withdrawal. Did purchasing in my situation re-qualify me as FTHB?

CatinaT1's answer (which the correction I provided) is a listing of the requirements to qualify as the first-time homebuyer for exception to the early-distribution penalty on an IRA distribution, the tax purpose to which it applies.

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