“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.