2009 Homebuyer Credit Repayment Issue - Moved away but old home won't sell (renting, residence)

[nyllie]

I know there have been other threads on this, but none with my specific issue. I bought an apartment (co-op) in October 2009 and received the $8000 tax credit. In January 2012 (after 2+ years) I had to move 2000 miles away for work. The home has been on the market for over a year. Renting is not allowed, so I have been fully paying for a vacant apartment. This will be the first tax year where I am clearly no longer a resident of the area, but I am still the only homeowner, fully responsible financially, and have now owned it 3+ years. When the home sells, it would sell for such a loss that I wouldn't have to pay back the credit.

So I'm wondering what to do tax-wise this year. It's clearly no longer my primary residence, but how does not being able to sell factor into the credit repayment? And when it does sell, it will be enough of a loss that I wouldn't have had to pay the credit back anyway. There's no rental situation involved. I haven't been able to purchase another home here due to being tied up in the old place.

Thanks!

[oregonwoodsmoke]

If it is not rented, you declare it as a second home and you really need to consult a tax accountant.

[Missingatlanta]

Sounds like you have to pay all the money back. We went through the same thing. I called the IRS and someone explained what we had to do. We ended up not selling and just renting our house out though but still had to pay the entire credit back. I believe if you sell at a loss you don't have to pay the full amount back.

I would contact the IRS to see what applies to your situation.