The Federal Government offered to first time homebuyers a tax credit in 2008, 2009, & 2010. This was not a true tax deduction, but it is important to keep track of it & when you actually claimed it.
*If you claimed the credit after April 8, 2008 & before January 1, 2009 you must repay 1/15th of the credit. This may be repaid over 15 years with no accrued interest. Generally speaking you will not need to repay the credit if you purchased your home in 2009, 2010, or early 2011. However, if you sold your home, or if you are no longer using it as your primary residence, within 36 months of your purchase you must repay the “Homebuyer Tax Credit” on the tax return in the year the home was sold or was no longer your primary residence.
1. If the home is no longer your primary residence you may need to add the remaining unpaid credit to your income tax in your next filing.
2. The repayment rules are a bit more forgiving for Uniformed Service Members, Intelligence Community Workers & the Foreign Service Personnel who have been on extended duty with assignments at least 50 miles away from their primary residence.
As always; please consult your Tax Professional