Do I have to repay $8000 tax credit if I move out of my home and lease it to someone else?
I bought my condo in July of 2009 and got the $8000 first time tax credit. I'm going to move out of state for a new job and rent it out my condo through a property management company starting August of 2011. I won't be buying another place, I'll be renting an apartment for myself. It's my understanding that doing this before July 2012 (3 years) means I have to repay the credit on my next tax return. I'm wondering if since I lived here the majority of days during 2011, if I can file my next tax return from this address and claim it as my primary residence for this year? Will that prevent me from having to repay? How will this play out if it doesn't work? Will the IRS send me a notice saying that I have to repay the $8000. If they do, when and how much of it will I have to repay? Do I have a better option, such as simply selling the place or maybe doing nothing?
Asked By: - 7/21/2011
Best Answer - Chosen by Asker
This is just another example of massive ignorance by certain politicians in the federal government... More
Answered By: mrreliable3599 - 7/21/2011
Additional Answers (7)
Yes you will owe the full 8k before April 2012 Sell it and you also repay the 8k.
Answered By: someone - 7/21/2011
You have to reside in the home for a lest 2 years before you can lease it. If you are Military this may not apply to you. If you rent it out prior to 2 years you might pull it off, depending on circumstances.
Answered By: Patfirst name Blackburn - 7/21/2011
You took a LOT of free money from the government, which had strings attached... More
Answered By: chatsplas - 7/21/2011
once this is no longer your primary residence the credit is repayable, selling is not an exception
Answered By: tro - 7/21/2011
Yes you have to pay it back since you won't be living it as your main home for 3 years. What you're proposing is attempted tax fraud, so unlikely they'd just say well, pay what you owe and we'll call it square.
Answered By: Judy - 7/21/2011
If the home is no longer YOUR primary residence, you owe back the WHOLE $8000. Do you think the IRS is not going to notice your new address on your W2 they get from your new out of state job?
Answered By: the kid - 7/21/2011
The $8000 credit is all or nothing.T he "majority of days" is not good enough as this is a 36 months to the day deal... More
Answered By: the tax lady - 7/21/2011
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