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Old 02-21-2011, 09:58 AM
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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!



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Old 02-22-2011, 04:48 AM
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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.



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