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Answers (10)
Best Answer
- SoCal_Engr
- Contributions:5661
I am neither an attorney nor CPA (so this is not legal/financial advice), but the following is taken from IRS Form 5405, Part III, Section 13b. I have added the "bold" section.
"I sold (including through foreclosure) the home to a person who is not related to me and did not have a gain on the sale (as figured after reducing the basis of my ome by the credit I claimed in 2008). No repayment of the credit is required. Stop here."
Of course, you should review the entire form to make sure that the other categories of sales subject to repayment of the credit do not apply to you.
"I sold (including through foreclosure) the home to a person who is not related to me and did not have a gain on the sale (as figured after reducing the basis of my ome by the credit I claimed in 2008). No repayment of the credit is required. Stop here."
Of course, you should review the entire form to make sure that the other categories of sales subject to repayment of the credit do not apply to you.
- Brock Harris, "brockharris"
- Contributions:235
Best question I've seen here, and good answers.
- Marilyn Stark, "Marilyn Stark"
- Contributions:14
Hi Parrytox
As a real estate professional, I cannot answer legal or financial questions. I would refer you to someone with that expertise to give you a definitive answer to your question.
However, looking at the IRS Form 5405 required for filing with your Federal taxes, you will see there are some questions to give you an idea about the answer. Depending on your particular situation, the answer varies. Have a look at the second page and Part III. There is a question about Foreclosure that may apply.
Best of luck!
Marilyn Stark
Century 21 Heritage Realty
[contact info removed by moderator]
As a real estate professional, I cannot answer legal or financial questions. I would refer you to someone with that expertise to give you a definitive answer to your question.
However, looking at the IRS Form 5405 required for filing with your Federal taxes, you will see there are some questions to give you an idea about the answer. Depending on your particular situation, the answer varies. Have a look at the second page and Part III. There is a question about Foreclosure that may apply.
Best of luck!
Marilyn Stark
Century 21 Heritage Realty
[contact info removed by moderator]
- Michael Pickett, "Occasio Realty"
- Contributions:91
The best resource for these kinds of questions is here: http://www.irs.gov/pub/irs-pdf/f5405.pdf. The way I understand it is that the owner needs to keep the home for three years, so most likely, you will need to pay it back. That said, you should consult an attorney and accountant to verify information here.
- Loretta Buckner, "RealWorldProperties"
- Contributions:205
It depends--review the rules here: IRS Homebuyer Tax Credit and here: Form 5405
Q. If I claim the first-time homebuyer credit in 2009 and stop using the property as my main home before the 36 month period expires after I purchase, how is the credit repaid and how long would I have to repay it?
A. If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. See Form 5405 and its instructions about repayment of the credit. (5/6/09, 1/27/10)
I would consult with a tax professional to be sure, though! I am not a lawyer so I cannot give legal advice.
- Gregory Victors, "Gregory Victors"
- Contributions:6
Yes the answer has many answers including there were different rules the past couple years. The credit has been around for the past two almost three years. So depending when you closed escrow and claimed the credit, you will have different rules.
Others who have given advise are spot on ask you tax adviser/ preparer.
Others who have given advise are spot on ask you tax adviser/ preparer.
- Stephanie Weiss, "Stephanie Weiss"
- Contributions:88
This would be best answered by a tax professional or you can check at IRS.gov online. I believe you have to occupy the residence for 3 years, but again, check with your tax professional.
- Michael Emery, "MikeEmery"
- Contributions:7284
For the definitive answer, contact the irs.
IRS.gov
or
1-800-829-1040
IRS.gov
or
1-800-829-1040
- Randy Hooker, "GoingForIt"
- Contributions:395
That is a great question to ask a CPA and/or tax attorney!
- Andrew Robb, "Andrew Robb"
- Contributions:7
This is actually a personal tax question that is best asked to your CPA, as a REALTOR is not qualified to give any tax advice.
Do I have to repay the 8K first time home buyer tax credit if my house gets foreclosed?
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