Can you take $10,000 first time homebuyers tax credit when using an inherited IRA
December 2023 client takes a distribution and receives a 1099-R
Box 1 Gross Distribution $264,076
Box 2 Taxable Distribution $264,076
Box 2b Taxable amounts not determined checked
Box 7 Distribution Code 4 Death
IRA/SEP/Simple marked with X
Client used funds to purchase a home in 2023 with these funds.
Question: Can the client take a $10,000 first time homeowner's credit resulting in taxable income being reduced? If yes, where do you enter in Lacerte?
