Jason B asked:
My fiance and I are buying at home and both qualify for the first time home buyer credit. I’m assuming that we both can’t claim the $8,000, so does one of us claim it, or can it be split up 50/50 (mirroring our ownership of the house)?
Moreover, I have a question as to how unmarried co-borrowers claim tax deductibles items on a home they own as joint tenants?
Alice
My fiance and I are buying at home and both qualify for the first time home buyer credit. I’m assuming that we both can’t claim the $8,000, so does one of us claim it, or can it be split up 50/50 (mirroring our ownership of the house)?
Moreover, I have a question as to how unmarried co-borrowers claim tax deductibles items on a home they own as joint tenants?
Alice
Carlos
If both are on the loan, each claims half. It is extremely unwise to purchase a home together before marriage. If you break up, one will be left to make the payments. If they default, the other will be held responsible. Both could end up with ruined credit. If you are not under contract before the end of September, you probably will not be able to close in time to get the credit unless the deadline is extended (11/30 is the last day to close)
Comment by knowitall — March 13, 2010 @ 9:26 am
Julia
You can either have one person take it or split it anyways you want. As for the deductions it is beneficial for only one to take the interest and tax, that way the other one gets the standard deduction (as opposed to both splitting the itemized deductions and no one getting the standard deduction.) Technically the deductions should go to whoever paid them, technically.
I love it when people tell me how stupid it was to buy a house with a boyfirend. Those people really need a reality check, as if being married means we won’t break up!! Ha, yeah right, reality check, most married people divorce… what happens with their homes, same thing that would happen with mine if my boyfriend and I break up.
Comment by Me time — March 14, 2010 @ 9:36 am