Home Selling in York>Question Details

Fireman43, Home Seller in York, PA

Repayment of $8000 tax credit

Asked by Fireman43, York, PA Mon Nov 23, 2009

I purchased my home in March 2009, claiming my $8000 tax credit for filing year 2008. I read I have to be primary resident for 36 months. If I sell my house early 2010 and move out of state for another job, I have to repay that $8000 right? Is it prorated and who does the money go to? If I make 10K on the sale, I can use those proceeds to pay back the credit, right?

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Dear Fireman43,

You must repay the credit only if the home ceases to be your principal residence within 36 months of purchase. The full amount of the credit comes due on the return for the year the homes ceases to be your principal residence. However, you only have to repay the credit to the extent that you have a profit if you sell your home. Contact your tax advisor about the specifics of your situation.

Good Luck,

Carrie Roberts
Michael Saunders & Company
Sarasota, FL
1 vote Thank Flag Link Mon Nov 23, 2009
You sound like you are in a good position, if your house has appreciated since then and you are hoping to make a profit. Good luck with your move!

If you have an accountant who helps you file your taxes I'd call him/her and ask for advice.
0 votes Thank Flag Link Sat Jan 1, 2011
Thank you folks! I believe that answers my question, or confirms my suspicions. The house was appraised for 8K higher than my purchase price, plus I have completely remodeled the kitchen and living room since then. I think I will have no problem taking the hit on the profit. Thanks again everyone!
0 votes Thank Flag Link Mon Nov 23, 2009
As Terrence stated, it is best to consult your tax advisor. Sorry I can't help you there. However if you need any advice on getting your home sold please contact me. Thank you.

Dayne K. Riddle
0 votes Thank Flag Link Mon Nov 23, 2009
Excellent question. You should really get with your tax advisor for the answer.

Terrence Charest, e-Pro
0 votes Thank Flag Link Mon Nov 23, 2009
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