If you transferred the home in 2018 to your ex-spouse due to divorce, by indicating this to the IRS on Form 5405, you will no longer be liable to pay back any of the First Time Home Buyer Credit:
Please follow these instructions to complete Section I of Form 5405:
- Login to your TurboTax Account
- Click "Take Me To My Return"
- Click "Federal" from the left side of your screen
- Click the "Deductions and Credits" tab at the top of your screen.
- Scroll down to "Your Home" and click "Revisit/Start" next to "Homebuyer Credit Repayment"
- Choose "Yes" this was still your main home on 1/1/2018
- Enter Date of Purchase and click "Continue" and then "Continue" again
- Answer "No, my situation changed" and enter the date this was no longer your main home and click "the above does not apply" if applicable
- Choose "Transferred the house to ex-spouse due to divorce"
- Enter spouse's name and date of transfer
