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    #1

    FTHBC and separated

    The other thread about the people who got the FTHBC and then had to move prompted me to think about this situation.

    young couple been married 2 or 3 years. They bought a house in 2009 and got the credit. In 2010 they separated. They are not divorced but will file MFS for 2010. They both still own the house although he moved out sometime in the last half of the year.

    Since it is not a change in marital status, will this impact their credit?

    Linda, EA
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    #2
    Ceasing to be one's principal residence within the time period you suggest triggers recapture. See ยง36(f)(2).

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      #3
      Recapture for one and not for the other?

      I guess you could say it is temporary since they are only separated. There is a chance they will work things out, I suppose. I think he is willing.

      Linda, EA

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