Repay first time home buyer tax credit
January 26, 2011 8:44 AM Subscribe
Situation: Husband and I bought a house in 2009, received the 8k first time home buyer tax credit. Divorced, still own the house but have renters. How the heck do we repay the credit?
I have found several sites telling how to repay if we are still filing jointly, but we are not and on the Form 5405 I don't see a place to check divorced, still own house. We would like to each pay back 4k and be done, but I'm not sure if this is possible. Yes, I can call the IRS, but I was wondering if anyone else was in the same situation.
I have found several sites telling how to repay if we are still filing jointly, but we are not and on the Form 5405 I don't see a place to check divorced, still own house. We would like to each pay back 4k and be done, but I'm not sure if this is possible. Yes, I can call the IRS, but I was wondering if anyone else was in the same situation.
You might want to clarify who now owns the house. Is it you, him or still jointly owned?
posted by jon1270 at 8:58 AM on January 26, 2011
posted by jon1270 at 8:58 AM on January 26, 2011
That does sound like an attorney-appropriate situation. You might call the IRS first, though.
posted by jon1270 at 9:22 AM on January 26, 2011
posted by jon1270 at 9:22 AM on January 26, 2011
It's not explicitly called out in the instructions, but the common sense answer is that the credit was allocated evenly between you in 2009, so on line 14 of the 5405 you both put $4k, and then you both pay back $267 this year. But I would call the IRS to confirm.
posted by smackfu at 9:51 AM on January 26, 2011
posted by smackfu at 9:51 AM on January 26, 2011
Note: I am not a lawyer/accountant, etc.
First of all since you are renting it out, the whole credit needs to be paid back now, but you are already planning on paying back the full amount so that works. If one of you had received full ownership of the house as part of the divorce settlement, that person would end up with the full obligation to pay it back. Since you are both still owning it jointly though, you both still together have to pay it back. I can't find anything official explicitly spelling it out, I assume you would do that via both of you separately paying $4000. Here's a blog post from someone in a similar situation and asked the IRS about it.
posted by burnmp3s at 12:44 PM on January 26, 2011
First of all since you are renting it out, the whole credit needs to be paid back now, but you are already planning on paying back the full amount so that works. If one of you had received full ownership of the house as part of the divorce settlement, that person would end up with the full obligation to pay it back. Since you are both still owning it jointly though, you both still together have to pay it back. I can't find anything official explicitly spelling it out, I assume you would do that via both of you separately paying $4000. Here's a blog post from someone in a similar situation and asked the IRS about it.
posted by burnmp3s at 12:44 PM on January 26, 2011
Response by poster: Thanks for the help, I finally got the IRS (4 tries) and yes, we simply enter 4K each.
posted by courtyard at 1:40 PM on January 27, 2011
posted by courtyard at 1:40 PM on January 27, 2011
This thread is closed to new comments.
posted by anastasiav at 8:53 AM on January 26, 2011