New home owners credit

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  • Ken
    Senior Member
    • Jul 2005
    • 180

    #1

    New home owners credit

    Well I see a lot of people I know that are still here. Its been a long time since I posted but I am wondering if anyone has had any questions concerning the new home owners credit AFTER the home was purchased. My son has a friend who works as a border Patrol agent here in Arizona and he purchased a new home and got the first time home buyers credit. He now finds that he is being reassigned and was thinking about renting the house out. I know a person cannot sell the house for three years or he will have to pay the credit back, but what about renting it out? Any thoughts?
    Thanks
    ken
  • solomon
    Senior Member
    • Aug 2006
    • 1012

    #2
    ยง36 is clear. Dispose of the principal residence or ceases to be the principal residence.

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    • Gary2
      Senior Member
      • Aug 2010
      • 2066

      #3
      As I recall, if he sells, his repayment is limited to his gain (remembering to subtract the credit received from the basis), but if he rents it out, he'll have to pay it all back.

      A wild thought: check if any of the exceptions for the military, etc. apply here. I think the Foreign Service is included for those exceptions, maybe the Border Patrol fits in there somewhere.

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