Do i have to repay the $8000 tax credit if my house is refinaced in someone elses names?

Question

Me and my Ex-girlfriend bought a house in 2008 and now she is refinacing the house to be put into her name, taking me off the loan. My question is that the $8000 tax credit that we got is the one we have to repay, so by taking my name off the loan, do i have to repay the loan in the same terms or quicker? And what is the best solution?

Answer 1

Best Answer - Chosen by Voters

Who claimed the credit? To keep the credit you must both own and live in the home for 3 full years from the closing date of the purchase.

If you did and you are moving out of the home, you must repay the credit in full. If she claimed the entire credit and is remaining in the home, she gets to keep the credit. If you split the credit between yourselves (i.e. you each filed an amended return and claimed 1/2 of it) then you have to repay your share once you move out.

Merely refinancing does not trigger the repayment. However if you come off of the deed and/or move out of the home, either of those events triggers the repayment.

Answer 2

does she make enough by herself to even qualify for a mortgage on her own?
you may have to repay that entire 8000 credit at once - talk to a tax accountant

Answer 3

If *you* got the $8000 credit and your name is taken off the TITLE (not the loan), you'd cease to own the property and have to pay it back.

Answer 4

The $8,000 tax credit has to be paid back if you live in the residence less than 3 years. If you take your name off the loan, you'll be taking your name off the title, thus will have no rights to the property. The $8,000 will have to be paid back. I suggest waiting 3 years then going ahead with the change.