My wife has owned the current home we live in prior to our marriage. We are under contract on a 2nd home, would I be able to take $10k out of my Traditional IRA since this is technically my "first home" without the 10% penalty. The 2nd home will be in both of our names.
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No. You are not a first-time homebuyer. To be a first-time homebuyer, neither you nor your spouse is permitted to have had an ownership interest in a main home in the 2-year period ending on the date of the acquisition of the new home. Since your wife presently has an ownership interest in a main home, neither of you qualifies as a first-time homebuyer.
No. You are not a first-time homebuyer. To be a first-time homebuyer, neither you nor your spouse is permitted to have had an ownership interest in a main home in the 2-year period ending on the date of the acquisition of the new home. Since your wife presently has an ownership interest in a main home, neither of you qualifies as a first-time homebuyer.
What if the new house is purchased by the first-time home buying spouse? So the only name on the mortgage is the first time home buyer?
mfh2019, for either spouse to qualify as a first-time homebuyer, both spouses must qualify as first-time homebuyers. It doesn't matter whose names are on the mortgage. For an individual to qualify as a first-time homebuyer neither the individual nor the individual's spouse can have had any ownership interest in a principal residence during the 2-year period ending on the date the individual acquires a principal residence.
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