topic Tax Year Prior to 2020: IRA withdrawl for first time home buyer in US in Deductions & credits

Tax Year Prior to 2020: IRA withdrawl for first time home buyer in US

nandkv-online — Mon, 22 May 2023 20:00:30 GMT

Hi,

I need assistance with validating if I qualify as first time home buyer for IRA withdrawl.

I have been renting for the last 8 years and am looking to close on a property in US. Per IRS you can withdraw upto $10,000 each (me and my spouse) without paying 10% penalty when purchasing home for the first time.

Though I do own two properties that I purchased in 2010 and 2012 abroad that are reported on my taxes every year since I do get rental income on those properties. Would owning properties that are rented out full year disqualify me as first time home buyer ? I would think that is true but wanted to get clarification.

Please note that I was not aware of this rule back in 2010 and never withdrew from IRA when I purchased my first property.

Thanks

Re: IRA withdrawl for first time home buyer in US

VictorW9 — Tue, 31 Mar 2020 01:51:49 GMT

Yes, you are right. Being that you already owned rental properties you may not qualify as a first-time home buyer.

Re: IRA withdrawl for first time home buyer in US

nandkv-online — Tue, 31 Mar 2020 01:53:54 GMT

So it really doesn't matter where in the world you own properties as long as you own a property you are disqualified ? Is that correct.

Re: IRA withdrawl for first time home buyer in US

VictorW9 — Tue, 31 Mar 2020 01:57:17 GMT

Yes, being that you are already reporting the rentals in your tax return, I can hardly see a way around it.