A. said...
I have a pretty complicated scenario, and I'm hoping you can help!
I bought a house in Sept. 2009 and filed an amended 2008 income tax form to get the $8,000 first time home buyer tax credit.
My husband and I have since split, and we sold the house this month, August 2010. I know I'll have to pay back the tax credit, since we sold the house within 36 months of purchase. I purchased the home for $85,000 and sold it for $100,000, after closing expenses, etc. the net profit was $11,158.
My questions are....
1. Will I have to pay back the entire $8,000? I make significantly less money than my ex, (my adjusted gross last year was around $15,000). But I filed for the credit, so I know it will be my responsibility to pay back. But what if I can't afford to?
2. Is there any adjustment for pay back based on how much I made on the sale and/or my income changes? (We filed a joint 2009 return, but I'll file 2010 single return.)
3. If there is no adjustment, is there any way to pay back the credit NOW, rather than wait until next tax season?
I could really use some advice. Thank you!
Monday, August 16, 2010
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3 comments:
Dear reader, thank you for visiting out blog. Here are answers to your questions
1. Would you have to pay back the entire $8,000? The simple answer is YES
2. Is there any adjustment for pay back based? NO
3. Is there any way to pay back the credit NOW, rather than wait until next tax season?
Yes, you can make an estimated tax payment of $8,000.00. If you need a voucher to make this payment please contact us at info@webtaxoffice.com and we will be glad to prepare one for you.
Once again, thank you for visiting our blog and trusting us with you tax issues.
Web Tax Office Team
http://webtaxoffice.com
Hi,
Along these same lines, I took advantage of the tax credit. But had to take another job in another state. So, the house is not our principal residence and is for sale listed at a loss...but it is not sold yet. Do I have to pay the $8k credit back?
Thanks.
Dear Wolf, thank you for using our service to post your question.
The answer to your question is "Yes", you have to repay the credit back.
Good luck,
Web Tax Office Team
http://webtaxoffice.com
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