When you sell your main home to a non-related
person or entity, you repay the remaining amount of the credit limited to
the amount of your gain. When calculating gain or loss on your
main home, you reduce your basis by the amount of the credit you received that
you have not previously repaid.
So in your case, your
is basis is $180,500 ($185K - $4,500 remaining balance). You then sold the home
for $168,300 ($180K - $11,700 closing expenses), so this means you had a loss
of $12,200.
If you had no gain, you will not have to
re-pay the balance of the First time Home Buyer credit.
To repay the balance after selling the home, you must repay it with your tax return. To enter this in TurboTax,
- Click on the Federal Taxes tab
- Go to Deductions & Credits
- Under the Your Home section click start/update next to Homebuyer Credit Repayment
- Continue following the onscreen guide and answer the questions as they pertains to your situation. Based on the information you enter, TurboTax will let you know whether or not you need to repay the balance and if so how much.
