If you bought a home between 2008 and 2010 and claimed the First-Time Homebuyer Tax Credit, or you know someone that did, you need to read this. You may be required to start repaying that credit, and the IRS is no longer mailing out reminder notices.
The credit of 2008 was really more like a no-interest loan than a true tax credit. There were other tax credits that came the following years that WERE true tax credits, but the 2008 vintage needs to be paid back in 15 equal installments, starting with your 2010 return. This will be on line 59b of your 1040 form.
If you sold the home you claimed a tax credit for, or even if you stopped using it as a principal residence, you have may to repay the credit, and this may apply whether you bought the home in 2008, 2009 or 2010. If that describes you, you should be attaching form 5405 to your return to repay the credit.
This is a very complicated issue as there were many different types of homebuyer tax credits, and the rules changed every year, and even during some years. For more info, got to www.irs.gov and search for “First-Time Homebuyer Credit.” They even have a webpage where you can look up your account to see if you are supposed to be paying your credit back, and what your balance is: https://sa2.www4.irs.gov/irfof-fthb/
I AM NOT A TAX EXPERT. PLEASE CONSULT YOUR OWN TAX EXPERT FOR SPECIFICS TO YOUR SITUATION. If you have questions on any other real estate topic, call me at (925) 240-MOVE (6683). To search the MLS for free and view virtual tours of homes for sale, go to: www.SharpHomesOnline.com. Sharp Realty