Advice from Tracy Venturi of Ask the Experts
Many current homeowners were fortunate to take advantage of the federal government’s offer of up to $8,000 for first-time home buyers to buy a home back in 2008, 2009 and with closing dates through September 30, 2010.
We are working with home sellers who were able to buy during this period and took advantage of the tax credit. Now the question is… do I have to repay my first-time home buyer tax credit?
The answer to the question is that it depends upon when you purchased your home and which tax credit benefit was in force at the time. Also, the answer can depend upon your reason for selling your home and whether you are a member of the military.
There were different versions of the tax credit depending upon when you purchased your home. The IRS website has lots of useful information for those who were able to take advantage of this tax credit and with regard to repayment rules. http://www.irs.gov/uac/First-Time-Homebuyer-Credit-1 is a good place to start or call the First Time Home Buyers Credit toll free number at 1-800-919-0352 and it will direct you to the information.
So, in general, if you purchased your home and received the first-time home buyer credit in 2008, you should already be repaying the credit since the 2010 tax season.
If you received the tax credit for a home purchased in 2009 or 2010, you only need to repay the credit if you don’t own and use the home as your primary home for 36 months after your closing or purchase date.
Of course there are some exceptions, so be sure to check with your CPA or the IRS if you are selling your home, or it could trigger the repayment.
About Tracy Venturi
For additional information about the Venturi Team and its extensive list of services, please visit their user-friendly website: www.WelcomeHomeABQ.com, or call her at 505-263-2526.