Author Topic: First Time Homebuyer Credit Repayment Question  (Read 1212 times)

notoriusjt2

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First Time Homebuyer Credit Repayment Question
« on: January 24, 2017, 01:31:28 PM »
I bought my first home in 2008 and received the FTHC of $7500 when filing my taxes in 2009. I am required to payback $500 a year until the full $7500 is paid off. So as of now, I still owe $4500. This past year (2016) I sold the house and purchased a new one. That triggers a full repayment of the difference ($4500) on my upcoming taxes. Ouch

Anyways, while doing some research, I have found that the amount I have to repay is dependent on the gain of the sale which is adjusted for renovations/remodels completed on the property as well as brokerage fees occurred during the sale of the house. If I add all of these up I actually ended up losing $11k on the sale and I am NOT required to payback FTHC. Yay

Looking through all of my receipts, I only have about 50% of my renovation/remodel receipts. Is it necessary to have every single receipt to claim this on my taxes?

Drifterrider

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Re: First Time Homebuyer Credit Repayment Question
« Reply #1 on: January 24, 2017, 07:21:56 PM »
I bought my first home in 2008 and received the FTHC of $7500 when filing my taxes in 2009. I am required to payback $500 a year until the full $7500 is paid off. So as of now, I still owe $4500. This past year (2016) I sold the house and purchased a new one. That triggers a full repayment of the difference ($4500) on my upcoming taxes. Ouch

Anyways, while doing some research, I have found that the amount I have to repay is dependent on the gain of the sale which is adjusted for renovations/remodels completed on the property as well as brokerage fees occurred during the sale of the house. If I add all of these up I actually ended up losing $11k on the sale and I am NOT required to payback FTHC. Yay

Looking through all of my receipts, I only have about 50% of my renovation/remodel receipts. Is it necessary to have every single receipt to claim this on my taxes?

Only if you get audited :)

I also bought in 2008.  Were did you find the information saying you don't have to fully repay.

notoriusjt2

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Re: First Time Homebuyer Credit Repayment Question
« Reply #2 on: January 24, 2017, 08:45:22 PM »
The H&R Block tax software touches on it a little, but if you go to form 5405 instructions it talks about basis cost and what applies.

RWD

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Re: First Time Homebuyer Credit Repayment Question
« Reply #3 on: January 25, 2017, 07:52:44 AM »
We also purchased a house in 2008 that we sold for a loss in 2015. I filed using TaxAct which determined we did not have to pay back the remaining balance.