Can I claim the $8,000 first-time home buyer tax credit if my name was on the deed, but not the mortgage?

Angie asks: If my name was never on a mortgage, but was on the deed, am I able to claim the $8,000 tax credit on a house I purchased myself? I am currently getting divorced and my name was only on the deed and I am in process of buying my own home.

Under the existing $8,000 first-time home buyer tax credit law, no, the fact that your name was on the deed to a home (even if it’s not on the mortgage) would exclude you from taking the first-time home buyer tax credit. There is, however, some good news for you.

Congress is voting today on whether to extend the first-time home buyer tax credit program (which is slated to end November 1). If passed, the extension also includes tax credits of up to $6,500 for buyers who have owned their existing homes at least five years. To take the credits, both groups of buyers would have to sign a purchase agreement before April 30, 2010 and close by June 30.

Good Luck!

David @MoneyUnder30