New home and first time home buyers credit

[gman]

Taxpayer purchased a new home Feb 2010 and took the home buyers tax credit on the 09 return. Thinking of selling the home purchased in Feb 2010. What would be the tax consequence if sold this year, or after Feb 2013?

[appelman]

Big difference.

At least potentially. No repayment is required if it remained the taxpayer's main home for the three years after the purchase. Otherwise some or all of the credit may have to be paid back, depending on the gain on the sale. See instructions to Form 5405, which probably should be filed in any case to avoid correspondence from the IRS. See also:

http://www.irs.gov/uac/First-Time-Homebuyer-Credit-1

[gman]

Thank you

they will meet the 3 year requirement, but this is the first one I have had to deal with on selling after taking the credit.