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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?

1 Thought on Tenant in common unit first time home buyer credit?
  1. Reply
    Paul in San Diego
    August 9, 2011 at 11:06 pm

    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.

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