As was foretold, we've added advertisements to the forums! If you have questions, or if you encounter any bugs, please visit this thread: https://forums.penny-arcade.com/discussion/240191/forum-advertisement-faq-and-reports-thread/
Options

New homeowner tax question

NisiNisi Registered User regular
edited January 2010 in Help / Advice Forum
Okay, so I am buying a home with my bf, we're both on the mortgage, however we won't be settling and moving in till March 1st. We're going to be claiming the first time homebuyer credit, and I think deducting a point we paid on the mortgage. I'm still a bit unclear on all the effects of this on our taxes.

We're not married and file separately, so my question is, do we need to split the credit/deductions in a certain manner or is it up to us? I should be getting a decent refund and want to file as soon as I can, and I'm thinking he can just get the entirety of the credit/deductions on his return. Our finances are intermingled so it doesn't really matter who it goes to.

Anyways does this matter, any reason I should wait to file till after settlement?

Nisi on

Posts

  • Options
    EggyToastEggyToast Jersey CityRegistered User regular
    edited January 2010
    According to the IRS, you should read this PDF: http://www.irs.gov/pub/irs-drop/n-09-12.pdf

    However I'm not sure how this affects your 2009 taxes, if it's all happening in 2010. You likely won't have to worry about it until next January?

    EggyToast on
    || Flickr — || PSN: EggyToast
  • Options
    The Crowing OneThe Crowing One Registered User regular
    edited January 2010
    I believe that only one of you will be able to claim the credit, and I would doubt that you could "split it".

    Also, the date of closing determines eligibility for the rebate, not move-in date. Regardless, I believe that the rebate will be for the 2010 year, though you may be able to squeak it into 2009 if you close before you file taxes.

    The Crowing One on
    3rddocbottom.jpg
  • Options
    NisiNisi Registered User regular
    edited January 2010
    Closing date and move in date are pretty much the same (well, minus a day) I think.

    The splitting it thing doesn't really matter as I've said. I just want to make sure I won't miss anything important in filing before the settlement date. I am curious though for the future, when deducting mortgage interest does it have to be split proportionally or is that something we just work out on our own?

    Nisi on
  • Options
    adytumadytum The Inevitable Rise And FallRegistered User regular
    edited January 2010
    You really need to have a tenancy-in-common agreement in place to work out how you'll split tax breaks, interest deductions, etc.

    adytum on
  • Options
    precisionkprecisionk Registered User regular
    edited January 2010
    Whomever bought the house, gets the tax credit. Only one person gets it or if you were married or both on the mortgage, you can split it evenly.

    precisionk on
  • Options
    NisiNisi Registered User regular
    edited January 2010
    adytum wrote: »
    You really need to have a tenancy-in-common agreement in place to work out how you'll split tax breaks, interest deductions, etc.

    It's not really an issue as our finances are intermingled pretty much. I get why it might be wise, but it isn't really necessary. I'm mainly concerned about requirements in filing, if we can just divvy it up however we please then that's just fine. Same with the first time home buyer credit.

    Nisi on
  • Options
    DogDog Registered User, Administrator, Vanilla Staff admin
    edited January 2010
    EggyToast wrote: »
    According to the IRS, you should read this PDF: http://www.irs.gov/pub/irs-drop/n-09-12.pdf

    However I'm not sure how this affects your 2009 taxes, if it's all happening in 2010. You likely won't have to worry about it until next January?

    You can file a 2010 purchase into 2009, just as you could file a 2009 purchase into 2008.

    Unknown User on
  • Options
    adytumadytum The Inevitable Rise And FallRegistered User regular
    edited January 2010
    precisionk wrote: »
    Whomever bought the house, gets the tax credit. Only one person gets it or if you were married or both on the mortgage, you can split it evenly.

    edit- err, I'm "slow." See below.
    As for principal residences purchased by unmarried buyers, IRS says that taxpayers claiming the credit may use any reasonable method to allocate the credit. That includes allocating the credit between taxpayers who are eligible to claim the credit based on (1) the taxpayers' contributions toward the purchase price of a residence as tenants in common or as joint tenants, or (2) the taxpayers' ownership interests in a residence as tenants in common.


    http://www.marketwatch.com/story/expert-gets-it-wrong-on-home-buyer-tax-credit-2009-07-24
    http://www.calt.iastate.edu/firsthome.html

    adytum on
  • Options
    NisiNisi Registered User regular
    edited January 2010
    Okay, so seems I got my answer.

    I can file now, and bf can take all the deductions/credits on his return for this year.

    Thanks guys! :)

    Nisi on
Sign In or Register to comment.