Skip to main content

First Time Homebuyer Credit may now be due for repayment

Helping make real estate dreams come true Have you received a Notice of Default on your property?  What are your plans?  Do you plan to walk away or do you want to try a Short Sale which has much less damage to your credit and helps you save face? You need a plan of action and if you want to buy some time, stay in the home until it sells and save up some money - then contact:
 Kathleen Lordbock REALTOR/Staging & Short Sale Specialist 
Keller Williams Realty Brainerd Lakes
Don't just walk away - there is hope, there is help!

First-Time Homebuyer Credit Questions and Answers: Repaying the Credit You may find yourself working with a seller this year who purchased a home in 2008-2011 and received the First Time Home Buyer Tax Credit. Bellow are two links directing you to the IRS web site that provides information regarding repayment requirements for the credit and the form the IRS requires your seller to fill out. http://www.irs.gov/newsroom/article/0,,id=253009,00.html http://www.irs.gov/pub/irs-prior/f5405--2011.pdf Some highlights: If your home was purchased in 2008, all remaining annual installments become due on the return for the year of sale. The repayment is limited to the amount of gain on the sale, if the home is sold to an unrelated taxpayer. If there is no gain or if there is a loss on the sale, the remaining annual installments may be reduced or even eliminated. If the home is sold to a related person, the total amount of the credit must be repaid. Taxpayers may want to consult a tax professional to determine the tax consequences of a sale. If your home was purchased in 2009 or later, and your home stops being your main home within 36 months from your date of purchase, you may need to repay all or part of the credit. The repayment of your credit is an increase to tax on your tax return for the year the home stops being your main home.

Comments

Popular posts from this blog

Do Bidding Wars Increase Home Prices?

‘Bidding Wars’ Not Boosting Home Prices, Latest HousingPulse Results Indicate Despite media reports of the emergence of so-called “bidding wars" in select housing markets, average home prices remained flat in the month of April, according to the latest results of the monthly Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. While reports of some home listings attracting dozens of offers have become common this year, the closely watched nationwide HousingPulse survey found that most homes sold in April received only two or three offers and sold below list price. Demand from investors remained strong during the month of April. Investors accounted for 25.1% of home purchases, while current homeowners accounted for 40.1% of purchases and first-time homebuyers accounted for 34.8% of purchases. Average prices for home purchases declined slightly from March to April, according to transactions reported by HousingPulse survey respondents. The average price for non-distressed p...

7+ acres and one level home

Helping make real estate dreams come true Kathleen Lordbock | Keller Williams Realty Brainerd Lakes | 218-831-8001 6641 Wetherbee Road, Brainerd, MN This one level home is a new build and just finished. Set on 7+ acres, it is in the heart of the Brainerd Lakes. Just a few miles to Crow Wing Lake, 3BR/1BA Single Family House offered at $118,000 Year Built 2005 Sq Footage Unspecified Bedrooms 3 Bathrooms 1 full, 0 partial Floors 1 Parking None Lot Size 7.5 acres HOA/Maint $0 per month DESCRIPTION Set in the country but close to town- this 3 bedroom residence has easy upkeep. Wood laminated flooring, tile and carpeted bedrooms give you the best underfoot solutions. All appliances are included and it is ready to go. 3 miles from North Central Speedway and just minutes to the BMX Bike racing course and The Spirit Horse Center. Acreage and home for one low price. see additional photos below ...