First Time Home Buyer Credit
7/2/09 8:39 AM, Viewed by asker 7/2/09 10:17 AM
Total Views: 200
Dear Sir/Madam,
Request you all to kindly express your opinion/views on the following query on First Time Home Buyer Credit.
Taxpayer acquired Main Home in the US in Feb 2009. He claimed the Home Buyer Credit of $7,500 on his 2008 US Individual Income Tax Return. Post filing, he came to know about the American Recovery and Reinvestment Act, 2009 that offers $8,000 as Nonrefundable Home Buyer Credit. He then decided to amend his 2008 Tax Return and take the benefit extra $500 dollars from the IRS. Now the question is, whether the taxpayer is liable to repay $8000 to the IRS or not? Please clarify!
Answer
From the irs website--
For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase
Answer
Since the home was purchased in 2009, it comes under the 2009 rules, meaning no payback. Subject to 36 month rule, of course.
