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2008 First Time Home Buyer Tax Credit Repayment

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ishmael
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2008 First Time Home Buyer Tax Credit Repayment  Reply with quote  

My wife and I purchased a home in May of 2008 and claimed the full $7500 tax credit that was available at the time. We made the required $500 payment on both my 2010 and 2011 tax returns. The home was so small that we needed to move out at the end of 2011. It was not possible to sell the home without losing 20% of it's value and we only had 5% equity. So, we turned it into a rental property that we are currently renting for less than we pay for the place. We were unable to get a second mortgage for another home so we had to rent one. I've now come to realize that turning the home into a rental property has required us to pay back the remaining $6500 of the first time home buyer credit. We don't have it. I don't see how my scenario is any better than if I'd sold the house at a loss which would not require me to repay the credit. What options do we have? My CPA says we don't have any.
Post Sat Jan 05, 2013 10:42 pm
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