Legal Question in Tax Law in Georgia

The 2009 tax credit for first time homebuyers required that a person could not have owned a house 3 years before the date of purchase.

I bought a house in December 2009.

My bankruptcy was discharged in October 2006.

The foreclosure sale for the house before the one I just purchased occurred in February 2007.

Did I have ownership rights after the bankruptcy discharge, or did I lose them after the foreclosure sale?

The IRS is denying the claim to the tax credit because the mortgage company sent them a statement for 2007.

Asked on 6/06/10, 3:56 am

3 Answers from Attorneys

Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

If the house was foreclosed in February 2007 that is when title changed. You should have sought legal and tax counsel before, not after, buying a home. Waiting two months would have saved you thousands of dollars.

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Answered on 6/06/10, 3:52 pm
Robert Thompson J. Robert Thompson Attorney

You could make a case that you ceased to have ownership of the house when you filed your bankruptcy petition, not when the title changed. You need to consult an attorney versed in both bankruptcy and tax law, since much depends on the precise facts.

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Answered on 6/07/10, 7:38 am
Scott Riddle Law Office of Scott B. Riddle, LLC

The filing of a bankruptcy case does not change the title of real property. That is a matter of state law and not bankruptcy law. Based on your post, an issue may arise as to whether it was at the sale or recording of the deed, but that is it. See a CPA or a tax lawyer.

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Answered on 6/12/10, 5:47 am

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