FTHBC taken by couple who now are seperated

[nwtaxlady]

I have not come across this yet until now. Is there any consequences here?

Clients purchased Home 12-09-09 and took the FTHBC on the 2009 tax return.

Clients seperated in March of 2012. Spouse has stayed in the house and plans to keep it. As the Taxpayer has moved out as of March 2012. Divorce is not final but they are filing MFS.

So what happens in this situation if anything?

Thanks.

[oceanlovin'ea]

TTB page 11-10 says For homes purchased after December 31,2008, the credit must be repaid only if the home is sold or ceases to be the taxpayer's main home within 36 months of the date of purchase.

So it was purchased 12-09-09 the 36 months would be up 12-09-12. So if he moved out before that time he would be responsible to repay his half of the credit.

I had that happen to one of my clients.

Linda, EA