Girlfriend buys a home in 2008 that she and boyfriend are going to live in. She qualified for the first time home buyers credit and is repaying the credit. The relationship turns abusive and girlfriend moves out. Girlfriend leaves the house to boyfriend so she can get away. How does she handle the repayment? It is no longer her home, so does she repay the entire amount of the credit back on this tax return? Or, are there any exceptions due to the horrible circumstances?
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One assumes that her name was on the deed when she originally claimed the credit in 2008. What have they done to remove the girlfriend's name from the deed? "leaves the house to boyfriend" = ?
If she just walked away without any paperwork she might actually still own the home... I could see nobody making payments and a 1099-A or 1099-C in her future.
Otherwise she either sold or gifted her interest in the home to someone? Perhaps she sold her interest in the home for the remaining mortgage debt? On 5405, 3a, 3b, or 3c. 3d if they still own the home since they're no longer using it as their main home.Last edited by David1980; 03-27-2014, 05:59 PM. -
There was no mortgage on the house. She paid for it. She told me she gave it to her ex-boyfriend so that she could get out of the relationship.Comment
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So home disposed of in gift then. 3c on 5405 which sends you to part II with the full amount of repayment now due. But I guess anyone who could afford to flat out pay for a home with no mortgage probably isn't hurting for money that bad. Very generous gift to an abusive boyfriend.Comment
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