Trnr395 Posted April 10, 2015 Report Share Posted April 10, 2015 My client received the 7500 credit that has been being paid back for four years so = $2000. She sold her house for a $72,372 and original purchase price was $77,250. For a loss of $4878.00, she still owes $5500 for the credit but the loss offsets that so total amount to be paid back is $622??? Am I thinking this correctly? Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted April 11, 2015 Report Share Posted April 11, 2015 Yep! If there was significant gain or any gain the the remainder of the credit up to the amount of the gain has to be repaid. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 11, 2015 Report Share Posted April 11, 2015 My client received the 7500 credit that has been being paid back for four years so = $2000. She sold her house for a $72,372 and original purchase price was $77,250. For a loss of $4878.00, she still owes $5500 for the credit but the loss offsets that so total amount to be paid back is $622??? Am I thinking this correctly? Because they sold at a loss, they do not owe any further repayment. Follow form 5405. Save yourself time and paperfile. The IRS database is messed up in that area and will reject it. Quote Link to comment Share on other sites More sharing options...
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