The IRS has released guidance regarding how it will treat homebuyer credits when reviewing and processing innocent spouse applications. There are three different scenarios—including ineligibility for the credit that was claimed—in which questions could arise in the context of an innocent spouse case.
In PMTA 2011-36, the IRS release guidance regarding how it will treat homebuyer credits when reviewing and processing innocent spouse applications. The IRS identified three different scenarios in which questions could arise in the context of an innocent spouse case.
- Ineligibility for the homebuyer credit - credit was disallowed.
- Jointly owned property. Generally, the deficiency would be allocated 50/50 between the spouses as if the spouses had filed using the Married Filling Separate filing status.
- Property purchased by one spouse.
