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

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?

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  • πρ
    Lv 6
    1 decade ago
    Best 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.

  • 1 decade ago

    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.

    Source(s): Form 5405 instructions
  • 1 decade ago

    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-A...

    TaxRef

    http://www.pdftax.com/

  • 1 decade ago

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

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