How does the $7500 tax credit for 1st time home buyers work when joint buyers are not married?

Question

If I bought my first house jointly with someone else, both be on the mortgage/title, etc- splitting everything 50/50, how would this new $7500 tax credit for first time home owners work? Would you both be able to take the credit ($7500 each for a total of $15,000) if you are first time home owners (and not married)? Or would only one of you be able to take it?

πρ · Accepted Answer

The Form 5405 instructions explain: If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount allocated cannot exceed the smaller of $7,500 or 10% of the purchase price.

Note. 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.

taxguy11 · Answer

The Form 5405 instructions explain: If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount allocated cannot exceed the smaller of $7,500 or 10% of the purchase price. 

Note. 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.

TaxTools · Answer

Under the new law, two or more unmarried individuals
may purchase a residence and qualify for the credit. They must allocate the amount of the credit between them as the IRS prescribes. However, the total amount of the credit allowed to the individuals jointly may not exceed $7,500.

http://tax.cchgroup.com/legislation/2008-Housing-Assistance-Act.pdf?cm_sp_o=1wTblkzfbBE%20VzTwCjCZBAlw%20Vzllwl%20ftw%20ZBAlbET%20-llblfzEgw%20az0%20-gf%20Bu%20niioCjC7yz5tbg

TaxRef
http://www.pdftax.com/

golferwhoworks · Answer

1 per home. The primary wage earner is the borrower and they would get it on their taxes

npk · Answer

http://www.federalhousingtaxcredit.com

How does the $7500 tax credit for 1st time home buyers work when joint buyers are not married?

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