On April 9th, from noon to 1 p.m., Jackson Hewitt's Mark Steber will take your tax questions. If you have some for him in advance, post them here. I'll forward them to Mark so he can get a jump on them.
Meanwhile, Scott E. Weiner, a senior tax analyst with Thomson Reuters' Tax & Accounting business, agreed to tackle a few questions. Here's answer No. 1:
Q. From LaKeshia: I entered into a contract on November 23,2009 purchase a mobile home but I am renting to own it, do I still qualify for the home buyers credit.
A: A rent-to-own transaction is essentially a lease with an option to buy. Until the option is exercised, ownership of the home stays with the landlord, not the renter.
The first-time homebuyer credit is available for the purchase of a main home. The tax code defines a "purchase" as an acquisition. The IRS says that a purchase doesn't take place until the closing.
Here, unfortunately, LaKeshia's rent-to-buy contract wouldn't entitle her to the credit. Her position is no stronger than someone who has entered into a purchase contract but hasn't closed.
The IRS does say that a taxpayer who purchases a mobile home and places it on leased land is eligible for the first-time homebuyer credit.