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Im preparing all my tax information for the 2012 year. My

I'm preparing all my tax...
I'm preparing all my tax information for the 2012 year. My wife purchased her condo on September 29, 2009 under the first time home buyers deal and received the $8000 credit. We currently still own the condo, but relocated to California at the beginning of September for work. On October 10, we converted the property to a rental. My question is, are we going to be on the hook to repay $8,000 because we moved three weeks prior to the 3 year mark. Please let me know thanks!
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Answered in 11 minutes by:
1/14/2013
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16,581
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Thank you for your question, and thanks for using JustAnswer.com. Unfortunately, the IRS states "The obligation to repay the credit arises only if the home ceases to be your principal residence within 36 months from the date of purchase. The full amount of the credit received becomes due on the return for the year the home ceased being your principal residence." So, you must live in that home for 36 months. If you are three weeks shy of that thirty six month mark, then you will owe the entire amount.

I'm sorry if this is bad news, please don't shoot the messenger. I can only report what the IRS has stated. You must be in the house for 36 months or else you are liable to pay that amount back.

You can CLICK HERE for more details. Please let me know if you need further assistance. Thank you again for using JustAnswer.com and have a happy, and safe, 2013.

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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.

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Customer reply replied 4 years ago

Hello, thanks for your prompt reply. The IRS also states that a home quits being your main residence "You no longer live in the home for the greater number of nights in a year." I guess my broader question is how can the IRS distinguish whether or not we were physically in the house or on an extended vacation. I'm just trying to find clarity in the law. Thanks!

In the law, there is no clarity. The IRS relies on voluntary compliance, meaning the IRS relies on you to make that determination.

If you move, and you're gone, and there's no intent to come back, that home ceased to be your primary residence. However, it would be up to you to tell the IRS that.

Please let me know if you need anything additional. Thanks again for using JustAnswer.com and have a happy, and safe, 2013.

** Please take a moment to rate my response as "Excellent" so that I may be compensated for assisting you today. Please let me know if my assistance was anything less than "OK Service", as I am compensated based on whether or not I have assisted you with your issue. If you need further clarifications, PLEASE WAIT TO RATE MY ANSWER UNTIL AFTER RECEIVING FOLLOW UP FROM ME. If I receive anything less than OK Service, I do not get paid. Thank you for your kind understanding in this matter. If you have difficulties rating, then simply respond stating that you are having difficulties rating and thank me for my excellent, good, or ok service and we can get the rating applied by the site*
You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.

Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16,581
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Verified
Megan C and 87 other Tax Specialists are ready to help you
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Megan C
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16,581
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Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

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