Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am going to be losing my house to foreclosure and also filing bankruptcy. I am wondering if someone would know if bankruptcy or foreclosure would be an exemption of repayment of that $8000 tax credit? I know you have to live in your home for at least 36 months and if not you have to repay. Just wondering if there were any circumstances that would be forgiven for repayment. Thanks for any replies!!!
I agree, you should find a local tax person to review your specific situation. However, if you look at the form for reporting the sale of your home here:
I agree, you should find a local tax person to review your specific situation. However, if you look at the form for reporting the sale of your home here:
Wow! I read this form before but nothing jumped out at me. I will definitely not have a gain on this property. This week I will get in contact with a tax person to get a 100% correct answer but from what I read it said if there is no gain no pay. Thank you soo much for taking the time to check that out!!!
I'm sorry to tell you that you WILL have a gain on the sale of the house. Even a foreclosed house is considering "selling it". I know this because my fiance is in the similar situtation. Your gain, after doing all those worksheets and reading all those publications will be 8 grand, the amount of the credit, and it will be added as additional tax on line 56 of your form 1040. Yes, you're going to owe it all back.
Kiitah, that's now commonly how it is interpreted. The amount of the tax you owe is no more than the profit you make on the SALE of the home. So if you sell, and net $1,000 in the SALE you would owe $1,000, ect.
My interpretation is if my house was purchased for 118 grand and after foreclosure they sell it for less than that I would owe nothing. But if they sell the house for more I would owe up to 8 grand of the selling price. I am in the trial period now so will see. I have a year and a half left to go and after that I am in the clear!
Quote:
Originally Posted by kiitah
I'm sorry to tell you that you WILL have a gain on the sale of the house. Even a foreclosed house is considering "selling it". I know this because my fiance is in the similar situtation. Your gain, after doing all those worksheets and reading all those publications will be 8 grand, the amount of the credit, and it will be added as additional tax on line 56 of your form 1040. Yes, you're going to owe it all back.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
