First-Time Home Buyer Tax Credit: 6 Things to Know

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What if someone buys a house who has no business owning a home, during the Obama FTHB timeframe, and then loses it to foreclosure 24 months later due to a lack of ability to manage their finances? Are they required to pay their FTHB credit back? Or since they didn't "sell" their property to another party, is that a convenient way for the current adminstration to screw the taxpayer again?

Steve Comer of IA 4:03PM August 23, 2012

if i received the credit of 7,500.00 for a home i bought in april 2008 and have made 500.00 payments on my taxes since then,if i sell the home in a couple of months for what i owe on it will i still have to repay the credit

linda mascoe of IN 11:33AM July 05, 2012

#6- What if we sell the home in the same month of puchase three years later, just before the same date? i.e. Purchased 07/17/2009, closing date of the sale is 07/01/2012.

KDM of NV 7:22PM May 16, 2012

Item number three is not entirely correct. If you were active duty military during 2009 and/or 2010, you can claim the the credit if you bought a home in 2009 and/or 2010.

Army Wife of TX 10:55AM January 26, 2012

#6 Recapture: I know the buyer has to own the home for three years to captalize on the credit but do they have to live the house all three years or can they rent it out if need it?

Evelyn of VA 6:59PM January 11, 2012

Does the tax credit apply if I want to purchase a home in 2011 or 2012

willie mayes of MD 8:44PM October 14, 2011

I've been denied my 2008 first time home buyers credit. I declared bankruptcy in 2005 but did have a partial year of interest I claimed on my 2005 taxes. I did NOT own a home for the 36 months prior to the purchase of my home in 2008. My loan was an FHA first time homebuyer's loan and I had to wait the 3 years to qualify for financing. I've sent in copies of everything they asked for and more, yet they keep sending denials sating I owned a home during the 3 prior years. Even the IRS FAQs outline the 36 months (calendar vs 3 fiscal years.) I am sick to my stomach due to the stress. I've even started paying back the "loan" as I did not get the freebie credit.

Worried Sick of OH 11:13PM October 11, 2011

THE REASON EVERYONE IS WAITING SO LONG NOW IS THE IRS LET THE FIRST CREDITS GO RIGHT THROUGH.PRISONERS CLAIMED THE CREDIT SOME EVEN GOT IT TWICE ,THEY GAVE OUT BILLIONS NOW THE REST OF US HAVE TO SUFFER BECAUSE OF CROOKS AND THE IRS NOT DOING THEIR JOB.WE HAVE BEEN WAITING SINCE FOR 1 YEAR.NOW THEY ARE TRYING TO DENY IT BECAUSE THEY GAVE ALL THE MONEY AWAY

RACHAEL of OH 8:04PM May 18, 2011

I feel betrayed being I used the first time home buyer credit in 2009 for the year 2008 in which it has to be repaid this is entirely unfair why is it right just because these people bought a home one year later then I did they get a free ride. this is very wrong indeed unethical in my opinion. I helped the economy just as much as they something wrong with this picture?????????

Donald of IN 9:29PM March 18, 2011