Posted on: 16th Aug, 2009 09:57 am
when recapture tax needs to be paid in a federally subsidized mortgage credit certificate loan
Hi af!
Welcome to forums!
As far as I know, the Federal recapture tax will be paid only on a portion of the capital gains on the sale of the property. The maximum amount of recapture tax that can be charged is 50% of the gain or 6.25% of the "original loan amount", whichever is less. However, you'll not have to pay recapture taxes if you sell off your home after 9 years or if you sell off your property with no gain. Also, if your income falls within the federal income limits, you won't be charged recapture tax.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, the Federal recapture tax will be paid only on a portion of the capital gains on the sale of the property. The maximum amount of recapture tax that can be charged is 50% of the gain or 6.25% of the "original loan amount", whichever is less. However, you'll not have to pay recapture taxes if you sell off your home after 9 years or if you sell off your property with no gain. Also, if your income falls within the federal income limits, you won't be charged recapture tax.
Feel free to ask if you've further queries.
Sussane