Welcome Guest. Register Now!  


Homeowner Tax Home owner tax issues and rebates.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-25-2011, 11:38 PM
Junior Member
 
Join Date: Apr 2011
Posts: 1
First Time Home Buyer Tax Credit repay?

My girlfriend and I took advantage of the Tax Credit last year and purchased a new home. We were both first time home buyers. To make tax season easier, she claimed the credit herself and we utilitized the credit together for home purchases. One year in and we split up. I am currently in an apartment and she is retaining the house for the time being. Regardless what happens, one of us will be remaining in the house for at least the 36 month time frame required for the Tax Credit. For one of us, the new home will not be our "primary residence" in reality, however both names will remain on the mortgage. Will we be required to repay the tax credit since one of us will be claiming an apartment as a residence for partial year 2011 and most likely an entire year 2012? Does it matter that the tax credit was claimed soley on her taxes?

Any help or comments are appreciated (except for the relationship advice of purchasing a home with your girlfriend :P ). Thanks!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-26-2011, 12:35 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,224
“however both names will remain on the mortgage. Will we be required to repay the tax credit since one of us will be claiming an apartment as a residence for partial year 2011 and most likely an entire year 2012?”----> I guess Only you need to repay the tax credit( your portion of the credit) that you received in 2010. Since the home is no longer your primary residence; you no longer live in the home for the greater number of nights in a year. The credit repayment is due at the time the income tax return for the year the home ceased to be your principal residence. For a home purchased in 2010, the credit does not have to be paid back unless the home ceases to be her ( your girlfriend)main residence within a three-year period following the purchase.
“ Does it matter that the tax credit was claimed soley on her taxes?”---->No, I don’t think so; she can still claim the credits. First-time homebuyer credit is eligible for a maximum credit of $8,000 on her return. The credit reduces her tax bill or increases herr refund depending on the tax she owes. The IRS refunds the credit, even if she owes no tax or the credit is more than the tax owed


Last edited by Wnhough : 04-26-2011 at 12:45 PM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
1st Time Home Buyer Tax Credit jprroth1 Homeowner Tax 0 05-06-2009 08:15 PM
First time Home Buyer Credit ilkergokeri Homeowner Tax 1 04-23-2009 08:46 AM
Do I qualify for 1st time home buyer tax credit? mch02 Tax Credit 0 02-19-2009 02:03 PM
What is the purpose of this First Time Home Buyer Tax Credit? TaxGuru Homeowner Tax 0 01-29-2009 03:13 AM
Can taxpayers claim both the DC 1st time Home Buyer Credit & First-Time Home Buyer? TaxGuru District of Columbia 0 01-25-2009 11:32 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning