My client sold her coop in 2014. She initiallly bought her coop in 2008 and was and qualified for the first time buyer program (7500) and start paying it down in 2010 $500. In 2013, she paid off the complete amount. She sold the coop in 2014. Is there any paper work related to the 7500 that she needs to file?===>>>>>>>>>>>>> by selling or renting the property, then you have to pay the balance of the $7,500 credit in full when you file the tax return for the year in which your living arrangements changed.. The first tax year that this credit was repaid, you had to complete Form 5405 and transfer the appropriate payment amount to your Form 1040. when you sell your home, the remaining unpaid tax credit is added to your taxes for that year. So if you claimed the $7,500 credit in 2008, repaid $500 with your 2010 tax return, and sold your home in 2014, you need to be prepared for an additional $7k tax bite when you file your tax return in April of 2015. Recognizing that the credit repayment could easily exceed the amount you realize, the IRS caps the amount you owe in recapture to the amount of the gain you realize. So if you bought your home for $200k and your sales proceeds after costs of sale are only $205k, the maximum credit you’d have to repay is $5k.
I been reading online that she might be able to get this credit back because the change laws in 2009.======>>>>>>>>>no.
I am trying to find where she can or is eliglbe for this credit=========>>>>>>>>>>>> once you claimed and received the one-time credit on your income tax return for 2008, you must repay the credit. It is repaid as an additional tax on your tax return. There are special rules for repaying the credit if the home stops being your main home.
In 2009, the govt made the first-time homebuyer tax credit ; First-time homebuyers can have $8k of FREE government
But if you stop using the home as your primary residence, any remaining balance of the credit must be repaid when you file your tax return for the year you sold the home or moved. The payback amount, however, can’t exceed the amount of profit.The newer version of the first-time home-buyer tax credit is different. People who close on a new home from January 1, 2009, to June 30, 2010 and sign a binding contract by April 30, 2010, can qualify for a first-time home-buyer credit of up to $8k. This credit doesn’t need to be repaid, as long as they live in the home for at least 3 years.