First Time Homebuyer Tax Credit

I believe you will only have to return a portion of it, not the whole thing.

LINK

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You must repay the full credit when:

You sold your main home to a related person or entity Your home is destroyed, condemned or disposed of under threat of condemnation and you do not purchase or rebuild a replacement home within two years. You converted the entire home to a rental or business property. You converted the home to a vacation or second home. You no longer live in the home for the greater number of nights in a year.

You may have to repay the full or a part of the credit when:

You sold your main home to a non-related person or entity. You repay the amount of the credit up to the amount of your capital gain. Note: when calculating gain or loss on your main home if you received the first-time homebuyer credit, you reduce your basis by the amount of the credit. See Publication 551, Basis of Assets, for more information. You lost your home in a foreclosure.You must repay the credit only up to the amount of gain. (1/6/11)

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my understanding is the 7500 tax credit is the one that you must repay, not the 8k. I would ask a realtor or a CPA to make 100% sure what the rule is.

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Correct. The 2008 $7500 must be repaid, not the 2009 $8000.

I am looking to sell my house and would owe back the remaining balance on the $7500, however, the amount owed back is limited to the gain on the property. Since, I will be taking a loss on my house, I won't owe back any.

Not sure how that works on the 2009 - $8000.