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Give me just a second here to find your link
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Sorry, I wanted to link you to the IRS answer
If you (transferor spouse) transfer your main home to a spouse or former spouse (transferee spouse) under a divorce decree, the transferee spouse who keeps the home is responsible for repayment of the entire credit if, during the 36-month period after the purchase of the home, the home ceases to be his or her main home. You (transferor spouse) are not responsible for any repayment of the credit. (1/6/11)
What this means is that the spouse who keeps the home continues to make the repayments
OK - so husband can transfer house to wife without having to repay tax credit so long as she stays in the house for 36 months. Is that correct? What if wife needs to refinance the house? Does that trigger the repayment?
First answer came from here:
Thank you. I believe I understand that part. What about a re-fi if wife needs to do so. Does that trigger a repayment of the tax credit?
I'm getting the link for that answer for you
I think its always better to give the source of the answer instead of just telling you
Sorry, my computer's a little slow....do you mind bearing with me a minute?
Not a problem
Are we still together?
Sorry, my computer locked and I had to reset
ok - are we back online?
I understand if you don't want to wait, but I am still trying to get you the link that goes with my answer
Not a problem - I'll wait. Just wanted to make sure we were still working together
I know that refinancing does not make the credit payable in full. You simply continue to make the payment
I deeply apologize that my computer is being so slow
I don't understand what you mean by payable in full. Does part of the $8000 become repayable if you refinance to remove a spouse's name from the loan?
Not as long as you still own the home for the full 36 month period
The repayment would only come into play if you sell the home
Are you planning on selling the home within the 36 month period beginning from the time you first purchased it?
All right. That seems to answer my question. So long as wife continues to own the home for at least 36 months, she can refinance to remove husband's name from loan and it will not trigger repayment of the tax credt. Am I correct on this? Not planning to sell the home within the 36 months. Just wanted to make sure we didn't have to repay the tax credit.
I was only trying to find additional information in case the house was going to be sold
Thank you so much. You have been extremely helpful. If you have nothing further to add, I'll accept and sign off.
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and thank you for being patient with my computer this morning