Homebuyer credit & Divorce
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New Member

Homebuyer credit & Divorce

I bought a 2008 house and took the credit, obviously, with an ex. We divorced in 2011 and I gave her the house. Since then I've been repaying the credit but this year my taxes are being rejected over it.

Upon calling the IRS, it's now after tax season and they can't help, the automated "assistance" says in my circumstance I'm not liable to repay the credit.

Either way I'm stuck and need to figure out how to proceed. The while home buyer credit and debit card situation has been trouble from the start. Most accountants and CPAs have no clue as to handling it. 

4 Replies
Level 9

Homebuyer credit & Divorce

Why have you been repaying it for the last 7 years?

Depending on exactly what "I gave her the house" means, either (a) you should have repaid the your 50% of the full amount in 2011, or more likely, (b) your spouse is responsible for the full $500 each year, not you.

You may want to go to a good tax professional to sort things out.

Q. What are the exceptions where I may not have to repay the full credit?

A. The exceptions where you may not have to repay the full credit are:

  • If you (transferor spouse) transfer your home as part of a divorce settlement, your former spouse (transferee spouse) who keeps the home is responsible for making the rest of the repayments and you are not responsible for making any remaining repayments.


S14. During their marriage, Taxpayer A and B purchased a home together and claimed the credit. Later they divorced and Taxpayer A transferred the home to Taxpayer B under the divorce decree. Taxpayer A did not keep any interest in the home. Are repayments waived for Taxpayer A?

A. If the home was purchased in 2008, Taxpayer A is no longer required to repay any remaining amount of the credit. Taxpayer B now is responsible to repay the entire remaining amount of the credit in equal annual installments.

New Member

Homebuyer credit & Divorce

Yes. I've been repaying half for the last 7. Tax "professionals" are the reason I'm using TurboTax. They were not able over a couple years to figure out even how to file the home buyer credit.
Level 9

Homebuyer credit & Divorce

That is why I said to go to a "good" tax professional.   Recommendations from friends or family is your best option, otherwise, I recommend an "Enrolled Agent".
New Member

Homebuyer credit & Divorce

I have an identical situation that I have been fighting through. My tax consultant has filed the form and yet my taxes were adjusted to take the repayment anyway. Did you get any resolution fr4nk1yn?

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