Elderly taxpayer qualified for first time home buyer credit. If she has to go to a nursing home within 3 years does credit have to be paid back?
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I would say yes.
Chris -
Agree. I've not seen any IRS regulations containing any exceptions.Originally posted by spanel View PostChEAr$,
Harlan Lunsford, EA n LAComment
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Don't know
This exception is for selling your home--I wonder if this would apply for the recovery period?
Exceptions to Ownership and Use Tests
The following sections contain exceptions to the ownership
and use tests for certain taxpayers.
Exception for individuals with a disability. There is an
exception to the use test if, during the 5-year period before
the sale of your home:
· You become physically or mentally unable to care
for yourself, and
· You owned and lived in your home as your main
home for a total of at least 1 year.
Under this exception, you are considered to live in your
home during any time that you own the home and live in a
facility (including a nursing home) that is licensed by a state
or political subdivision to care for persons in your
condition.
If you meet this exception to the use test, you still have to
meet the 2-out-of-5-year ownership test to claim the exclu-
sion.Comment
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I would consider it a temporary absence unless it was clear she couldn't return.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
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I think she ought to get a round of applause for being a positive thinker.
Last edited by JohnH; 03-23-2010, 02:22 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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The exception mentioned is for exclusion of gain. I agree with other posters on the FTHB credit -- have not seen any exceptions for sale prior to 3 years.Comment
Comment