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First Time Homebuyer Credit Situation
Posted on 2/13/14 at 10:36 am
Posted on 2/13/14 at 10:36 am
Here's the situation:
Purchased a home in 2008 (was a first time homebuyer) for $215k. I started paying this back starting on my 2010 tax return at $500/yr. Total credit was $7,500
Sold home last May and purchased another home in the same month. According to IRS, the remaining amount of the credit, $5,500, must be paid back on this years tax return. HOWEVER, I sold the home for $215k, so I had no gain on the property.
According to IRS website, "If there is no gain or if there is a loss on the sale, the remaining annual installments may be reduced or even eliminated. Taxpayers are urged to consult a professional to determine the tax consequences of a sale."
Any pro's on here with knowledge on how to reduce or eliminate paying this back?
TIA
Purchased a home in 2008 (was a first time homebuyer) for $215k. I started paying this back starting on my 2010 tax return at $500/yr. Total credit was $7,500
Sold home last May and purchased another home in the same month. According to IRS, the remaining amount of the credit, $5,500, must be paid back on this years tax return. HOWEVER, I sold the home for $215k, so I had no gain on the property.
According to IRS website, "If there is no gain or if there is a loss on the sale, the remaining annual installments may be reduced or even eliminated. Taxpayers are urged to consult a professional to determine the tax consequences of a sale."
Any pro's on here with knowledge on how to reduce or eliminate paying this back?
TIA
2
Posted on 2/13/14 at 10:40 am to geauxfish24
Interested in the same. My situation is almost identical to yours.
I'm going to search the IRS website, but do you happen to have a link to where you found it?
I'm going to search the IRS website, but do you happen to have a link to where you found it?
Posted on 2/13/14 at 10:45 am to geauxfish24
quote:
Purchased a home in 2008 (was a first time homebuyer) for $215k. I started paying this back starting on my 2010 tax return at $500/yr. Total credit was $7,500
Can someone explain to me why you are having to pay back the credit
I could see if you sold within 2yrs or something realistic, but its 6yrs later.
Posted on 2/13/14 at 10:59 am to Lsut81
2008 Home Buyer Credit was essentially an interest free loan of $7500 to be repaid over 15 years (500/yr)
2009 (and maybe later) Home Buyer Credit was $8000 credit which only had to be repaid if you sold the house within 2 (or 3?) years. Not sure of all the details on this one. Didn't pay that much attention to it. I was too disappointed that we have to repay ours, but those who bought in 2009 don't.
2009 (and maybe later) Home Buyer Credit was $8000 credit which only had to be repaid if you sold the house within 2 (or 3?) years. Not sure of all the details on this one. Didn't pay that much attention to it. I was too disappointed that we have to repay ours, but those who bought in 2009 don't.
Posted on 2/13/14 at 11:18 am to Booyow
I also bought in 08 and my brother bought in 09. He doesn't owe anything and I am saddled with the 500/year. I am not complaining, because I feel we should have to pay that money back, and we did not have to take it, even though 50%+ of this country pay nothing to the Fed.
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