My husband passed away (1/2015) and we owned our home together since 5/2006. In 2016 I decided to purchase a new home. To help pay for the purchase I used a ROTH IRA that I inherited from my husband. I was told by a friend that as long as I reinvested the original contribution ($8000) into a new ROTH IRA, I can keep the interest and it won't be taxable. I'm beginning to see that it is A LOT more complicated than that:
First, do I qualify as first time home buyer? I owned a Co-op apartment until 2004 but my husband and I owned our homes together until his death. So can I claim this as a first time home buyer? If not, what can I do?
Second, how do I deal with the ROTH IRA that I inherited and used to buy the house? I reinvested the original $8000 into a new ROTH IRA but I used everything else for the house. I was told that my tax liability would be limited if I reinvested the original contributions. Was I told wrong?
You'll need to sign in or create an account to connect with an expert.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
memorris7
Level 2
MommaTraveler
Level 1
MommaTraveler
Level 1
green2ski
Level 2
2Indian R
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.