Is a military discharge grounds for not repaying the $8k first time homebuyers tax credit, ifthe buyer isunable to stay in the location of the house?
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Is a military discharge grounds for not repaying the $8k first time homebuyers tax credit, ifthe buyer isunable to stay in the location of the house?
I bought a home 15 months ago and am facing discharge from the Navy in the next few months. According to the credit, I have to reside in the property for 36 months, but I know that doesn’t apply to military members under orders. Does discharge count as military orders, since they discharge you to your home of residence? In my case, that is AZ. It’s also possible this isn’t the case, since I haven’t been discharged yet, and I’m looking at renting or selling the property (renting most likely).
Asked on July 21, 2011 South Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You need to carefully read the terms of the loan you have detailng the $8,000 first time home buyer's tax credit and the terms/obligations/requirements for this credit. The documents on the subject should shed some additional information on the subject.
You might also consider calling the mortgage broker (assuming you had one) to further assist you on the subject and to inquire in general if you actually have to live in the property the time you are not in the military to total 36 months with credit for months in the military. Most likely you will need to live in the property for the time you are not in the military to comply with the loan's terms of face the possibility of violating its terms with results you may not want.
Good luck.
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