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.
https://www.irs.gov/newsroom/first-time-homebuyer-credit-questions-and-answers-homes-purchased-in-20...
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.
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