8000 credit on multiplex?

**wbraun** · 12-26-2009, 06:42 PM

Does the 8000 tax credit for homes purchased between Nov 2009 and April 2010 include a four-plex apartment building if I live in one of the units for 3 years?

Thanks to all on here who have answered other questions on the forum.

**BoiseRealEstateSoup** · 12-27-2009, 12:07 PM

Originally Posted by wbraun

Does the 8000 tax credit for homes purchased between Nov 2009 and April 2010 include a four-plex apartment building if I live in one of the units for 3 years?

Thanks to all on here who have answered other questions on the forum.

The short answer is yes.

IRS Form 5405 says that the purchase must be of your "main home", which may translate to primary residence.

Based on my findings, you will only receive a tax credit for the portion of the Four Plex which you intend to live.

So as an example let's say you purchased a Four Plex for $200,000. Since you'll only be occupying one fourth of the Four Plex, then you need to divide the $200,000 by 4. In effect, you are now only able to receive the tax credit on $50,000 rather than the entire purchase price. Since the tax credit is only 10% of the purchase price, you would only receive a $5000 tax credit in this scenario.

Keep in mind that whenever you make a real estate purchase, especially for investment purposes you should seek the counsel of a tax advisor.

Hope this helps, happy house hunting!