"Recapture Tax" question (loan, income tax, credit, requirements)
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Has anyone ever had to deal with paying a "recapture tax" on the sale of a house purchased under FHA guidelines.
Basically their site states: "Some CHFA mortgage loan programs are funded by tax exempt mortgage revenue bonds. If you use these programs or receive a credit against your federal income taxes through a Mortgage Credit Certificate, you could be subject to the Federal Recapture Tax if and when you sell your home."
The rules for figuring out whether or not a there will be a recapture tax seem so complicated, I'm ready to just go to a CPA. Has anyone ever had to deal with this?
Thanks. It's the 3rd thing that has me confused. I already meet the first two requirements but it seems really complicated to figure out whether or not I exceed the income limits. There is this complicated formula for figuring it out. If I do have to pay it, the FHA will refund the money to me but I'd still have to pay it first.
I was able to look up that my area is in one of those special "zones" but that's as far as I could get. My income has gone up by approx. 20% since I got the loan.
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