QUESTION:

My son bought a new condo last year and was able to get a great mortgage from yourself and he qualified for the first time home buyer's credit. He may have an opportunity for career advancement later this year but would have to relocate. Are there any exceptions to the rule about having to live in the residence for at least 3 years or face paying the $8,000 back to the IRS?

ANSWERS:

There are a few exceptions to the repayment requirement. It's waived in the case of death, for example, or if the home is "involuntarily converted" from your principal residence (i.e. destroyed in a storm) and you buy a new principal residence within two years. Another exception waives the repayment requirement if the owner transfers the home to a spouse or former spouse incident to a divorce. And, service members who cease using the home as a principal residence within three years as a result of being deployed more than 50 miles away from the home for more than 90 days or indefinitely do not have to repay the credit.

If none of the exceptions apply, however, someone who sells or ceases to use the home as his or her principal residence during the first 36 months after purchase would be required to repay the credit.

By Kevin McCormally,



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