In a recent estate case, the United States District Court for the Middle District of Pennsylvania ruled that the Estate of Kathryn Menges was not entitled to the First-time Homebuyer Tax Credit. Before Ms. Menges died, she claimed the First-time Homebuyer Tax Credit on her 2008 tax return. The IRS determined that she was not eligible for the credit. Ms. Menges disclaimed her property interest from her grandmother’s estate, but subsequently purchased a home within that estate. The court found that Ms. Menges obtained the property through a related person rather than within the meaning of “purchase” under 26 U.S.C. § 36.
For additional information on the subject, See 2014 TNT 215-18. See also Estate of Kathryn L. Menges, Deceased v. Miller, 1:2013cv01156, (M.D. Pa. 2013).
Posted by Aryane Garansi, Associate Editor, Wealth Strategies Journal