1st-time Homebuyer Tax-Credit Recapture Starts in 2010 for Homes Purchased in 2008.
1st-time homebuyers who purchased their homes in 2008 must pay back the tax credit over time. The rule applies only to purchases between Apr 9 2008 to Dec 31 2008. The payback is through adding $500 to 2010 taxes and the following 14 years. If the house is sold before full repayment, then the balance of the credit is taxable income.
For the homes purchased after 2008, there is no repayment of the tax credit unless the home is sold in less than 3 years.
Now the disclaimer: Please seek advice from your tax professional for details.
