8k First Time Home Buyer Credit Repayment?

Question

I'm hoping someone here will be able to guide me...

I purchased my first home in Feb. 2009 and received the $8,000 first time home buyer credit with the stipulation I would keep the home as my primary residence for 3 years.

My issue is, I recently became engaged to an Airman stationed in another state. His enlistment is up Feb. 2013 and we plan to return to the area, so I would like to keep the house, and am planning to rent it out to my roommate and another person. Since the mortgage and all utilities are already in my name, I plan to keep it that way, have the renters pay me their monthly payments, and I will in turn pay what is due.

I have been told by my buyer's agent who helped me purchase the house that because I am not the one in the military, I would not be able to get around repaying all $8,000. I am curious if this is true, or if there is a way around NOT repaying the credit, since I am keeping the home and plan on returning AND I am moving due to military....

any ideas?

Lai Holder · Answer

Thanks Brendan!! I am happy to know that since every dollar count now. We are not able to pay back anything. Thanks again!! :lol:

Brendan J. · Answer

Lai,

You wouldn't need to pay back anything. Since you still lived there as your primary residence, it doesn't matter if you rented out 3 of the bedrooms and slept on the couch.

It's an all or nothing deal. If you live there, you're fine.

Hope that helps.

Lai Holder · Answer

I bought a condo in June 2009. Then end of the year my husband lost the job till now.
By no choice we need to rent out one room for some income in Sept to Dec 2010. The rental income is $500 x 4 = $2,000. I want to
know if I need to pay back the credit $2000 or just some %?

Account Closed · Answer

There's no time limit on how long you must be married before qualifying.

Christy Jeffers · Answer

Hm. ok, well it's not like we planned to be engaged long anyway. there's a possibility of him getting deployed to Japan, and if we're married I'd be able to go with him. I'll check into the Form you mentioned. Any idea if there's a time limit or a number of months you have to be married for that to happen?

Thanks so much for the help, both of you!

Bill Walston · Answer

Jon is correct. That being said, an exception would be made if you were a military spouse (see Form 5405, Part III, 12). You would not have to repay the credit as long as your new primary residence (and duty station) is at least 50 miles from the residence used for claiming the credit. The exception does not apply to a fiancÃ© however.

Jon Holdman · Answer

Keeping the house is not enough to keep the tax credit. As soon as you move out (that is, it ceases to be your primary residence) the tax credit must be repaid. If you move out in 2010, it will become due with your 2010 tax return.

8k First Time Home Buyer Credit Repayment?

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