cali_korn_chic asked:
I’m currently going through different options but possibly looking at buying a TIC unit in San Francisco. I have never owned property, so I would qualify for the first time home buyer tax credit. However, I know that TICs can be complicated. The whole building is not for sale, just the one unit, and I would be buying it myself on a separate loan, to use as my primary residence. Would it qualify for the tax credit?
Martin
I’m currently going through different options but possibly looking at buying a TIC unit in San Francisco. I have never owned property, so I would qualify for the first time home buyer tax credit. However, I know that TICs can be complicated. The whole building is not for sale, just the one unit, and I would be buying it myself on a separate loan, to use as my primary residence. Would it qualify for the tax credit?
Martin
Leon
That’s a very good question. A TIC just means that everyone in the building owns a certain percentage of the building as a whole, as opposed to owning a certain unit outright (like a condo). But, as a tenant in common, you are assigned a designated space (unit) to occupy, as though it were a condo. This is done a lot lately, as restrictions on condo conversions get tighter.
You should ask a tax professional if purchasing a TIC share counts toward the first time buyer’s credit. Since the entire building is not being sold for the first time and you’re just buying a percentage of it, I could see the argument that the purchaser is not buying the property (like a condo unit), just a piece of an existing property. And, therefore, it would not qualify.
Comment by Paul in San Diego — August 14, 2009 @ 12:19 pm