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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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If I bought my first home in Aug of 2009. I just received my

Customer Question

If I bought my first home in Aug of 2009. I just received my 8000.00 refund and now that the interest rates are down and prices have dropped, Can I sell the home I bought in August and go and buy another home and be in a deal by April 30th and close by June 30th and still be able to keep the 8000.00 tax credit?
Submitted: 7 years ago.
Category: Tax
Expert:  RD replied 7 years ago.

If you sell the house than you will be required to pay back the $8000 tax credit that you received.

If the taxpayer sells the home, or the home ceases to be used as the taxpayer's (or the taxpayer's spouse's) principal residence within 36 months of purchase, the taxpayer will have to repay the credit. The repayment will be due on the tax return for the year in which the home is sold or ceases to be used as the principal residence.



Customer: replied 7 years ago.
Even if I were to buy another house and esablish it as my principal resdience I wouldnt be able to have that 8000.00 credit?Accept Answer
Expert:  RD replied 7 years ago.

Yes that is correct. Even if you buy another house you cannot keep the credit.