Posted on: 23rd Sep, 2010 04:26 pm
We purchased a home in 2009 and received the $8000 tax credit. 6 months later my husband was offered a position in another state. We found renters for our home and are currently renting but we want to purchase here. So two questions. #1 do I need to pay back the $8000 tax credit and #2 how will this affect purchasing a home here? The home here will now be considered my primary residence and the home I already own will now be a second home or investment property. Not sure how to go about this or what kind of financing to be expecting if we proceed to attempt to purchase in our new state. Any advice or info is appreciated.
Hi a_ehat,
You'll be liable to repay the tax credit only if the home ceases to be your principal residence within 36 months from the date of purchase. You'll be liable to pay back the whole amount when the home ceases to be your principal residence. Unless you sell off your present property, it will be difficult for you to qualify for another mortgage to buy a new home.
Thanks
You'll be liable to repay the tax credit only if the home ceases to be your principal residence within 36 months from the date of purchase. You'll be liable to pay back the whole amount when the home ceases to be your principal residence. Unless you sell off your present property, it will be difficult for you to qualify for another mortgage to buy a new home.
Thanks
Okay. Thank you! Soooo... as long as I DO NOT purchase another home here will my home in CA still be considered my principal residence? Even though we are currently not living there? I guess my question is what constitutes as a "Principal Residence"?