In the original comment you indicated that you did consult a tax professional who said you were not eligible.

The questions you noted all point to do you live, work and play from that “principal residence”.

The “tests” of prinicpal residence I have seen are when someone owns two homes and is trying to count the one in the more favorable tax locale as “principal”, and the test is often that you spend most or at least more of your time there.

That said, I know people who work on boats, fishermen, who spend much of their time on a boat. Their property purchase is a principal residence as they spend all of their time there when “not working”.

Is there a reason you don’t simply call the IRS and ask? I think if you lost your job (hope you don’t) that you would go “home” to that “house” evidencing that where you spend most of your time is simply “for work” like the fishermen.

I think you know it’s a gray area. You either have to find a tax professional who will do what you want, or you have to prepare your return yourself and hope for the best.

I think the fisherman that spends more of his time on a boat working, is the best analogy I can come up with.

The home purchase must be a principal residence – not a second home, investment home, or vacation home.
12. What exactly is a “principal residence”?
While the IRS has a variety of tax laws related to the purchase, ownership, and sale of a principal residence, a principal residence is never actually defined in the tax code. However, through a history of court rulings and IRS interpretations, there have emerged a variety of “tests” to indicate whether a home is a principal residence. Some examples of the key components that will guide and assist the courts and the IRS in determining a principal residence include:

Where do you pay your state & local income tax?
Where do you vote?
Where is the address on your driver’s license?
Where do you get your mail?
Where is your bank?
Where are the social & recreational clubs and other organizations to which you belong?

In terms of the actual types of homes that can qualify for a principal residence, it is a wide ranging list, as long as the home has a kitchen, sleeping quarters, and bathroom facilities. This can include detached homes, townhouses, condominiums, duplexes, semi-detached homes, attached homes, rowhouses, cooperatives, mobile homes, and even house boats
THIS IS FURTHER INFORMATION I HAVE FOUND….IF I RENT ANOTHER APARTMENT AND DON’T COLLECT ANY RENT FROM MY FRIEND THAT LIVES THERE THEN IT SHOULD BE CONSIDERED MY PRINCIPAL RESIDENCE.

It’s clear that vacation homes and rental property do not qualify. Seems you use it as a vacation home and if your friend pays you to live there, it would seem to be part rental property part vacation home.

Does your friend pay you rent?.

Thanks for the link on the IRA funds and good luck to you!

thanks again

No comment on the IRA part of the comment. As to the $8,000 Homebuyer credit, your tax liability or lack thereof doesn’t seem to matter. Click the “everything you wanted to know” link in the post, and you will see the FAQs on the credit, including that you cannot have owned your prinicpal residence for the last 3 years. Remember, it has to be your home that you will live in, and not an investment property, and you must continue to own and live in it for at least 3 years. I believe that is what the FAQs will tell you, so please check that out fully.

What I find odd is that you would consider buying a house now, if you have not considered doing so in the past. Buying a house to get the credit, vs. buying a house to own it during your retirement, seems to be “off” thinking. But if you have not owned a home for 3 years and would feel better owning one at this time in your retirement, seems to me that you would qualify.

You can check with your tax preparer or agent before entering into a contract to purchase a home, but that’s my $02 FWIW.