Question

First Time Home Buyer Credit

Forum|Forum|4 years ago
April 5, 2022
1 reply
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We bought a house in 2008 and my wife took the first time home buyer credit. We have been paying the amount through our tax return each year. Now she owns the house as part of the divorce and my return was just rejected because I did not add the payment to the filing. How can I file without it ?

Thank you

DaveF1006

Yes, but you need to inform the IRS through Turbo Tax that you no longer own the home because it was transferred to your ex as a result of a divorce decree. Here are the steps to follow.

Go to federal>deductions and credits
Your home>Homebuyer Credit Repayment
Next question you will say yes when it asks that you received the homebuyer credit in 2008.
Then it asks if you lived in the home at the end of 2021, you must say no.
Date stopped using home, select a date in 2021. Then a pop up will appear and here you will say none of these apply.
In the next screen, check the box that mentions that you transferred the house to an ex-spouse because of a divorce.
Next screen you will need to mention the date that you stopped using this as your main residence and then list the name of your ex-wife.
What this will do is issue a form 5405 and the box will be checked indicating you transferred the house to an ex-spouse because of a divorce.