Welcome Guest. Register Now!  


Homeowner Tax Home owner tax issues and rebates.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-21-2011, 09:58 AM
Junior Member
 
Join Date: Feb 2011
Posts: 1
First Time Homebuyer Credit question...

My husband and I bought a home in 2008 and received the First Time Homebuyer tax credit that has to be repaid. Last year my husband got a new job and we had to relocate. We rented out our house since we couldn't sell it and we are currently renting an apartment.

Our question is, since our house is being rented out now, do we have to repay the credit in full this year? Does it matter that we haven't purchased another house?

Any info would be greatly appreciated. Thanks!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-22-2011, 04:48 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,230
Our question is, since our house is being rented out now, do we have to repay the credit in full this year?”---> Correct; as your home stops being your main home ( since you convert the entire home to a rental or business property.),you should repay the credit. Repayment of the full amount of the credit( NOT a part of the credit in your case) 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.
“Does it matter that we haven't purchased another house?”---->No; as said above.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Ten Facts about the First-Time Homebuyer Credit Samatg Homeowner Tax 2 01-16-2015 01:32 AM
First Time Homebuyer Credit kwtaxadvice4 Miscellaneous 0 03-18-2010 10:56 AM
First Time Homebuyer credit confusion Chp223 Tax Credit 0 10-25-2009 12:48 PM
First-Time Homebuyer Credit and MRBs toofastcomet Homeowner Tax 0 02-05-2009 03:36 PM
First time Homebuyer credit bunny Homeowner Tax 2 01-25-2009 11:26 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning