First Time Home Buyers Credit-How to claim when two unmarried people buy together???
My fiancee and I just bought a house together and are claiming the $8000 tax credit. We are receiving conflicting answers as to how to claim it on our return. One is that he can claim the total $8000 on his return alone and the other is we each have to claim $4000 since we are not married and filing seperately. Can anyone clarify this for me? It would be much appreciated! Thanks!
Hi KG:
Your best bet is to talk to your tax accountant...you could also call the IRS help line, they usually are very helpful.
Good Luck
Diana 909-945-5763
Hi KG,
Q 14. Are two unmarried individuals both eligible for the first-time homebuyer tax credit if they buy a house together?
A Yes. Two or more unmarried individuals can buy a principal residence together, but the maximum tax credit for all of them is only $8,000. If all co-owners qualify as first-time homebuyers, they must allocate the $8,000 tax credit between themselves in any reasonable manner. According to the IRS, a reasonable method is any method that does not allocate all or a part of the credit to a co-owner who is not eligible to claim that part of the credit (see IRS Form 5405).
Hope this helps,
Walter
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