I bought a home under helping taxpayers pay, if I rent out my home before the three years are up, do I have to pay the $8000 back?

Asked by Scott Griffis , Mesquite, TX Tue Nov 22, 2011

My wife purchase this home by herself. And we would be moving to a home that I purchased by myself three years ago. If she rents out this home with six months left in the three-year contract would we have to $8,000 back?

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, ,
Tue Nov 22, 2011
I believe so..... Or maybe a portion?!?!

IRS.gov has some 800 #s on their website. I understand that they can be really helpful.
I would trust them over what some lender/realtor remembers about the program.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
1 vote
Dallas Texas, Agent, Dallas, TN
Sun Nov 27, 2011
Outside realtor scope to answer the question. Refer to your CPA

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes
Bruce Lynn, Agent, Coppell, TX
Wed Nov 23, 2011
You need to check with your accountant.
0 votes
Jodi Pendar…, Agent, Frisco, TX
Tue Nov 22, 2011
From the information I have, I'd say its possible that she may be required to pay back a prorated amount. You can contact an attorney or a tax accountant to confirm. Below is the information I have reguarding the 2 tax credit programs.
Customers that purchased in 2008 and received the $7500.00 new home buying bonus has to repay those funds.  The IRS will deduct $500.00 a year from the customer's refund or if no refund, will collect $500.00 a year in repayment.  At the end of 15 years, the loan is repaid in full.  If the customer sells prior to that time, they will be required to repay whatever balance is remaining.  This is all done thru their tax returns and not at closing, but that additional expense may impact their sale.  

Customers that purchased in 2009 and 2010 and got the $8000.00 bonus have only one stipulation.  They need to live in the home for 3 years to extinguish the debt.  If they sell prior to 3 years of ownership, they will owe the IRS a prorated portion of the $8000.00.

Jodi Pendarvis
Ebby Halliday Realtors
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Nov 22, 2011
Consult with your tax professional and or tax attorney, he/she can best advise; also see link below.
0 votes
Elizabeth Mo…, Agent, McKinney Tx, TX
Tue Nov 22, 2011
She needs to check loan conditions to see if the house must be owner occupied. She may not be able to rent it out. I recommend she get the paperwork from the transaction including all closing documents. I believe you are referring to the First Time Home Buyers Rebate. It is not clear whether you or your wife received the rebate.
Either way, you may want to speak with a real estate attorney and/or your personal accountant with questions regarding the conditions of the rebate and loan if you cannot understand the documents.
Consider this option: she could put her house on the market to sell. Let me know I can help if she needs to sell instead of rent.
Please let me know if I can help you or a friend with a real estate question or transaction!
Elizabeth Scarlett Morgan
Web Reference:  http://home-plano.com
0 votes
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