"I'd like to rent my house. I do not want to pay the tax credit back!"
I had really forgotten all about that tax credit, it seems like so long ago that the tax credit was done. I am going to add this to the next office meeting agenda as a remnder to all the agents.
Yesterday I received a call from a homeowner who is facing a job transfer. He wanted to rent his home because he did not want to pay the first time buyer tax credit back.
Quickly I looked up his public record information to see that he indeed bought his home before June 30th, 2010.
However, his logic was. He wanted to rent his home, so he did not have to pay the first time buyer tax credit back.
TFP: Tip From Peg:
Before you decide to list your home For Sale or For Rent, please refer to the First-Time-Homebuyer-Credit-Questions-and-Answers:-Homes-Purchased-in-2009-or-2010
Here's the scoop directly from the IRS Site linked above for someone who purchased a home in 2010:
If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. Form 5405 and its instructions will be revised for tax year 2009 to include information about repayment of the credit.
So the questions you have to ask yourself if you are facing a transfer, getting married, or divorced is.
- Can I afford to wait the full 36 months to avoid paying the credit back?
- What will I be facing if I get a tenant in that does not care for my home the way I do? How much does renting year to year cost me?
- If I just move, and don't rent my house or sell it, can I afford to carry the payment until I hit the 36th month?
- Will my home owners insurance provider cover my home if I leave it Vacant for months?
If you explore those questions and cannot wait, then let's explore all your options to see if renting your home or selling your home is your best option.
Here in the Prince William County Virginia area heading into 2013 resale inventory is low. That means you may be able to make up that $8000 with a quick sale, no carrying costs and a nice check at settlement.
You won't know until we run the numbers. Find out what your home is worth right now- CLICK HERE
If any other agents across the country want to add additional information? Please comment below.
I live and work in Lake Ridge, Virginia and service all of Woodbridge Virginia.
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Contact Peggy James of Exit Choice Realty 14067 Crown Ct, Woodbridge VA 22913. Realtors®,call me direct at 703-851-3085
When it's time to sell learn how I can "GET YOUR HOME SOLD FAST". I primarily work service the Woodbridge, Lake Ridge, Manassas Virginia area. To include the subdivisions of Lake Ridge, Westridge, Old Bridge Estates, River Falls, MeadowBrook Woods, Reids Prospect, Lynnwood, County Center, Dale City, Middle County and acreage homes.Basically all of Prince William County Virginia and anything between Fort Belvior and Marine Base Quantico.
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