Property Q&A in Rio Rancho>Question Details

James, Home Owner in Rio Rancho, NM

Purchased home on 10/09 and received the $8,000 first time credit. Is there anyway around the 3 yr rule? My partner is being transferred to WA. USFS.

Asked by James, Rio Rancho, NM Mon Dec 6, 2010

She is an employee of the US Forest Service.

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4
Yes, rent it. For the remaining time.
0 votes Thank Flag Link Tue Dec 7, 2010
James,
If I wanted advice about my teeth, I would go to a dentist. If I wanted tax advice, I would consult with a tax professional. I suggest that is what you should do.
0 votes Thank Flag Link Mon Dec 6, 2010
Do I have to pay the homebuyer tax credit back? How much is the credit for? $7,500 or $8,000?

It depends. For homes purchased in 2008, the $7,500 credit (or 10% of purchase price, if less) operates much like an interest-free loan. You generally can repay it equal installments over a 15-year period unless you move out or sell the home earlier than that. The maximum credit is reduced to $3,750 for married individuals filing separately.

For homes purchased in 2009, you must repay the $8,000 credit (or 10% of purchase price, if less) only if the home ceases to be your main home within the 36-month period beginning on the purchase date. The maximum credit is reduced to $4,000 for married individuals filing separately.

What is the definition of main home? Does a condo count? How about an RV.

Your main home is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence.

For more info or a one on one consultation I can be reached at 505-449-7003 Mike Lizzi Allstar Realty. I am not a tax professional but I can help.
0 votes Thank Flag Link Mon Dec 6, 2010
You might want to talk to your accountant and see what the repercussions are if you try and sell it or even rent it out.
0 votes Thank Flag Link Mon Dec 6, 2010
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