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Anne
Anne, Master Tax Preparer
Category: Tax
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Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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My wife and I who were not married at the time both have the

Resolved Question:

My wife and I who were not married at the time both have the $7500 first time home buyer tax credit. The last 2 years I filed us married but filing separate so that we could both make a payment on the loan. This year that status isn't going to work for us. So, my question is how can we file on the same return and make a payment? I think we'll be in a position to pay one of these off...is there a way we can pay one off before filing taxes and then just continue to make payments on the 1 buyer credit loan? How can we pay it off without putting it on the tax return?
Submitted: 1 year ago.
Category: Tax
Expert:  Anne replied 1 year ago.
HI

Thank you for using justanswer. . Generally, there is no requirement to pay back the credit for a principal residence purchased in 2009 or early 2010. The obligation to repay the credit arises only if the home ceases to be your principal residence within 36 months from the date of purchase. The full amount of the credit received becomes due on the return for the year the home ceased being your principal residence.

If you do have to pay part of the credit back, you would still file ] Form 5405 (Rev. December 2011) and you would calculate the $ amount you would have to pay back in section III

I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me.



Customer: replied 1 year ago.


Is there any way to pay it back early without filing it as a part of taxes?

Expert:  Anne replied 1 year ago.
Unfortunately, no. The following quote is from

http://www.irs.gov/uac/Repaying-the-First-Time-Homebuyer-Credit-and-Understanding-your-IRS-Notice

and states:

You sold your main home or the home is no longer your main home.
You must report the sale or other disposition of your main home on a completed Form 5405 and attach it to your tax return for the year of the sale or other disposition. The IRS matches information from a variety of sources when your home is sold, destroyed, foreclosed on, or is no longer your main home. If you received the FTHBC and the IRS has information that the home is no longer your main home, the IRS checks your tax records to find out if you reported the sale or other disposition on the Form 5405. You may or may not have to repay the credit, but you do need to report the change to the IRS on the Form 5405. The IRS sends you a CP03c Notice when it has information your home is no longer your main home and you did not report the sale or other disposition on your federal tax return. This notice reminds you to report the sale or other disposition of your home on the Form 5405.

I'm sorry that this was not the answer you were hoping for, and I certainly wish you and your bride a long and happy marriage togther!

I truly hope this information is helpful but please do not rate until you are satisfied. If you want to click on 1 or 2 just click on the continue to work with me button instead. You will then be able to add any other info or respond to what I have posted so far. Rating 3-5 gives me credit and a good rating but you can still converse with me.


Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 1703
Experience: Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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