Saturday, August 6, 2011
2008 first time home buyers credit and foreclosure. am I screwed?
Purchased a house in may of 2008. claimed the $7500 on our taxes. home is being foreclosed on this year, 2011. I am moving out of state for work. Do I have to repay the credit since the house is no longer my primary residence or am I safe as long as the foreclosure goes through in 2011? The house has been my primary residence for the majority of days in 2011. Are the exact dates of move out vs foreclosure sale relevant or just events within a given tax year relevant? Any suggestions about what I can do to avoid having to repay? Might it work to have my wife and child stay in the house here and me to rent a room out of state until the sale goes through? Tax Lady, we can move out when the foreclosure process begins or when the house is sold at auction by the bank? According to Chase Bank, the foreclosure is in process and it's been assigned to their atty but there is no auction date set as of yet.
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