I bought a home and got a first time home buyers credit in 2008. I sold my home on February 29, 2012. Do I have to pay back the full credit this tax year or do continue with the 15 year payback?

ANSWER

The BIDaWIZ Team's Answer:

If you received the credit for a home purchased in 2008 and the home stops being your main home, you generally have to repay the balance of the credit in that tax year. However, there are exceptions to the rule for those that are in a divorce settlement, whose home was destroyed, if you pass away, or you sell the home for a gain. If you sell the home for a gain, then you only have to repay the credit up to the amount of the gain.