Hello all!!
So I am hoping to get some clarity here, heres my situation any direction would be greatly appreciated!!
I bought a house with a girl-friend in 2008, I received the tax credit the next tax year for $7500. Well in 2009 my girl-friend and I split she stayed in the house and I moved out. In early 09, she went to a lawyer and pretty much refinanced the house to get me off of the mortgage. I was off completely at this point.
So I am thinking that ok, I need to pay off $500 a year for the next 15 years during tax time which im fine with, I usually get back like $2500 a year so thats ok. Well this year while doing my taxes on turbo tax by myself for the first time, my federal came back with an error. Opps I forgot to enter this credit, so I did and now it gave me several options. I first said no I don't live here any longer and for the reason chose "other" and it said I needed to pay back the $7500 all at once during this tax period, which is a scary thought cause i don't have that money. So I went back to look at the options more carefully this time and the only other option that makes any kind of sense says sold the house to a relative or non relative which I feel like could be an option in this case, I think!?!?
My question is first, since she refinanced me out off the mortgage would that classify as me selling the house to a non-relative??
If no, do I have any options here as far as not paying the whole $7500 all back at once??
Thank you so much for the help!!
So I am hoping to get some clarity here, heres my situation any direction would be greatly appreciated!!
I bought a house with a girl-friend in 2008, I received the tax credit the next tax year for $7500. Well in 2009 my girl-friend and I split she stayed in the house and I moved out. In early 09, she went to a lawyer and pretty much refinanced the house to get me off of the mortgage. I was off completely at this point.
So I am thinking that ok, I need to pay off $500 a year for the next 15 years during tax time which im fine with, I usually get back like $2500 a year so thats ok. Well this year while doing my taxes on turbo tax by myself for the first time, my federal came back with an error. Opps I forgot to enter this credit, so I did and now it gave me several options. I first said no I don't live here any longer and for the reason chose "other" and it said I needed to pay back the $7500 all at once during this tax period, which is a scary thought cause i don't have that money. So I went back to look at the options more carefully this time and the only other option that makes any kind of sense says sold the house to a relative or non relative which I feel like could be an option in this case, I think!?!?
My question is first, since she refinanced me out off the mortgage would that classify as me selling the house to a non-relative??
If no, do I have any options here as far as not paying the whole $7500 all back at once??
Thank you so much for the help!!