[elaf4056]

I am currently enrolled in mortgage credit certificate (MCC) I was looking to see what happens if I rent out my primary residence a year after closing If I chose to downsize and move back with my family, do I simply not claim the MCC or will I violate the terms, I ask that because the brochure explains recapture of taxes only on selling the property or having an increase in income .

[Rabflmom]

Originally Posted by elaf4056

I am currently enrolled in mortgage credit certificate (MCC) I was looking to see what happens if I rent out my primary residence a year after closing If I chose to downsize and move back with my family, do I simply not claim the MCC or will I violate the terms, I ask that because the brochure explains recapture of taxes only on selling the property or having an increase in income .

The MCC is revoked if you do not live in the property it was granted to.

http://www.floridahousing.org/FH-Ima...ogramGuide.pdf

It states this right in the introduction of the program.

[elaf4056]

Will I get penalized, or be responsible for "tax recapture by the IRS if I did rent out the property?

[Rabflmom]

Originally Posted by elaf4056

Will I get penalized, or be responsible for "tax recapture by the IRS if I did rent out the property?

Did you read the document? Section 6 page 27, 28 discusses the charge for perjury and fraud. Yes you would have to pay the IRS back + the penalties+ interest probably just like when you owe the IRS because you don't report something or paid the wrong % etc.

If you rent it you will also lose the homestead deductions and have to pay a higher tax on the home too.

If you want to buy a rental and rent it out, then you should do it the right way. Skirting the law will get you in more trouble than it is worth.

[elaf4056]

Why are you accusing me of trying to commit fraud ? All I was asking if I decide to rent the property after a year for job relocation will I get penalized ? No I will not claim the MCC on my taxes if I decide to move but the MCC Brochure does not specify much besides MCC being revoked based on selling the property prior to the ten year mark.

[Rabflmom]

Originally Posted by elaf4056

Why are you accusing me of trying to commit fraud ? All I was asking if I decide to rent the property after a year for job relocation will I get penalized ? No I will not claim the MCC on my taxes if I decide to move but the MCC Brochure does not specify much besides MCC being revoked based on selling the property prior to the ten year mark.

Because of the way the posts you wrote sound. You made it sound like you were going to buy, get the break to save money, and then live elsewhere. You never mentioned you were going to notify anyone that you no longer qualified. Sorry if I offended you.

[elaf4056]

That's fine , but things happen in life now I am enrolled and I have a possible job relocation, will the irs penalize me if I voluntarily end my MCC for not having the property as my primary residence.