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Fwd: Tax question re $7500 tax credit and maybe getting it back?
I think I know the reasonable answer to this, but if like to see if any tax
people can advise:
Client bought a house in 2008, got the "tax credit" for $7500. In 2010,
they moved out of the house, which triggered having to repay the full
$7500. Which client did. In 2013 they sold the house through short sale,
so it was a loss on the house. According to tax law, as I understand, if
you short sale or foreclose on the house, then you don't owe that $7500
back.
So I'm wondering if the IRS would owe the client the money back since
she ended up short selling the house.
My gut says no since the triggering event for her to have to pay the $7,500
back was her moving out. But I know NOTHING about taxes. Any thoughts?
Holly Roark
Certified Bankruptcy Specialist*
The post was migrated from Yahoo.