Bought a house in April and submitted the forms for the $8000 credit. Received certified mail from IRS yesterday saying it couldn't be granted because I've claimed mortgage interest on my tax returns in the past.
Here's the deal. 3 years ago I attempted to take out a loan to get myself out of debt. I had shaky credit and wanted to pay off credit cards... the bank couldn't grant me the credit and suggested my dad co-sign for me. Brought dad to the bank, and banker suggested a Home Equity Line of credit against the house my mom and dad own. Dad took out a $20k equity loan ( I used 8k and paid him back) and I was named on the loan/credit card. At the end of each year I received the tax form showing how much interest was paid and included it with my tax returns, of course trying to get the best possible return. I cleaned up my credit, paid my dad back, and was able to buy the house on my own (Go me!) I never owned my parent's house, never was named on a deed, or the first or second mortgages they have had... only on this line of credit. Does that make me ineligible? :( How should I approach this with the IRS??