I don't think there is any single answer to this question. Certainly a lot depends on your relationship during the split. It also depends on how the home is legally owned. (There are several types of ownership. You should talk to an attorney to learn your rights in your particular ownership situation). And then there is the mortgage, which may have provisions that influence what you must do.
I would suggest that you gather a lot of information about your particular situation. Once you have the info, it may be time to spend a few hours with a couples counselor who can help you and your boyfriend work through the details of the split in a logical rather than emotional way. The result for both of you will be better.
Depending on what you and your boyfriend decide, the final step could very well be selling this house. If this is the case, then it would be wise to interview several real estate agents. You will need someone with special skills. You will need someone with a high degree of empathy and some patience â€“â€“ someone who can listen to two very different views of your real estate problem, who can avoid taking sides, who can help you work through disagreements as they arise and who can search for and (where possible) help you and your boyfriend find common ground.
It will be tough, but a situation like this can be resolved if everyone makes a commitment to stay calm, listen to each other and work for the best common solution.
Prudential Real Estate of the Rockies
if you sell before 3 years are up, the credit has to be repaid.....It is my understanding that if the house is sold at a large enough loss, the tax does not have to be repaid..........I strongly suggest you verify this and check with your CPA
Just out of curiosity, if you leave and he stays, is he prepared (and able) to buy out your share?
Sorry to hear the bad news. I would suggest a good real estate attorney and also also both of you have a good chat with your accountants. It's complicated; but not all that unusual. It can be worked out through the right channels. A realestate agent is not the right channel for this advice. We are not allowed to practice law or give legal advice to our clients. I hope first of all that you guys can get things worked out. But if not this will give you the chance to get everything in order so you are clear on what to expect. All the best.
Robert McGuire ASR
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct â€“ 303-669-1246
Best thing to do would be to check with an accountant.
The IRS has a lot of questions and answers online about dealing with the first time home buyer tax credit. See http://www.irs.gov/individuals/article/0,,id=233589,00.html
That page states in part:
"You purchased your home in 2009 or 2010.
For the three years after you receive the FTHBC, the IRS sends you a letter called a Notice CP03B, Courtesy Message About your First Time Homebuyer Credit. This notice lets you know what to do if you sell the home or it is no longer your main home. Generally, you must repay the entire credit for the year you sell the home or it is no longer your main home. There are some exceptions to this rule, however, and you do not need to repay the FTHBC for a home you purchased in 2009 or 2010 if it remains your main home for the three years after the purchase. To repay the credit, you must attach a completed Form 5405 to your federal tax return for the year the home stops being your main home. Find more information here on Repaying the Credit if your home is no longer your main home."
And if you were married:
If you (transferor spouse) transfer your main home to a spouse or former spouse (transferee spouse) under a divorce decree, the transferee spouse who keeps the home is responsible for repayment of the entire credit if, during the 36-month period after the purchase of the home, the home ceases to be his or her main home. You (transferor spouse) are not responsible for any repayment of the credit. (1/6/11)"
So you've got a bunch of issues. For instance--and I'm not an accountant so this isn't accounting advice--there is the question about whether the home remains a primary residence. However, ownership also enters into the equation, and that's not determined by who is physically in the home. (You'd remain an owner even if you moved out . . . unless you and your boyfriend reached an agreement regarding ownership.)
All of this is just a long way of saying that you absolutely need to consult with an accountant. And do so before making any decisions that could affect the repayment issue.
Great questions. Here is the link for the IRS. I hope it helps. Please feel free to call me if you need anything else. I also have a great CPA if you dont have one to talk to.
Best of luck~
Summit Home Mortgage