If I have a client that co-signed for his daughter's first home and used a his retirement plan to purchase a house. Can that qualify for the $10,000 first home buyer?

[sjrcpa]

Is this his first home purchase?

Is it his principal residence, too?

[ayalastaxes]

Yes, it's a mother daughter home, so he lives in the second section.

[sjrcpa]

If he meets the requirements then yes he can claim the penalty exception. Is his name also on the deed (as opposed to just on the mortgage.)

Just curious - how does "he" fit into "mother daughter"?

[ayalastaxes]

I guess the house has like an attached apartment and that is what they call the daughter part. I am not sure about the deed. Does that matter?

[sjrcpa · Accepted solution]

Yes. He has to have an ownership interest in this first time home "purchase".

[ayalastaxes]

Ok, Thanks for the clarification and all your help.

[sjrcpa]

You're welcome.