Home Buying in 85142>Question Details

Raschell, Renter in Mesa, AZ

Hi, I short saled my home after two years of owning it and I recieved the $8K first time home buyer credit. Now what will happen regarding the credit?

Asked by Raschell, Mesa, AZ Thu Mar 29, 2012

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Answers

5
Off of the IRS website:

Q. If I claim the first-time homebuyer credit for a purchase in 2009 or early 2010 and stop using the property as my principal residence before the 36 month period expires after I purchase, how is the credit repaid and how long would I have to repay it?

A. If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. Form 5405 and its instructions will be revised for tax year 2009 to include information about repayment of the credit.
1 vote Thank Flag Link Sat Mar 31, 2012
Outstanding answer from Bill Parker -- nice research Bill
0 votes Thank Flag Link Tue Apr 17, 2012
Thank you.
Flag Tue Apr 17, 2012
Seek council with CPA and attorney.
0 votes Thank Flag Link Fri Mar 30, 2012
What a great question -- for your attorney. If not your attorney, then you might check with your accountant. Either way, you need to seek out counsel from a professional in those fields: "tax" and/or
"legal."
0 votes Thank Flag Link Fri Mar 30, 2012
You should really check with your cpa or accountant on this.
0 votes Thank Flag Link Thu Mar 29, 2012
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