Taxpayers are urged to consult a professional to determine the tax consequences of a sale.

The IRS is notifying taxpayers who claimed any of the credits of their repayment requirements.  If you have not received any notices, information can be found at: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

$8000 Home Buyer Tax CREDIT (sales between January 1, 2009 and on or before April 30, 2010 - closing by September 30th, 2010)
- Does NOT have to be repaid unless the home is sold within 3 years after the initial purchase.

$6,500 Move-Up / Repeat Home Buyer Tax Credit (sales between November 6, 2009 and on or before April 30, 2010 - closing by September 30th, 2010)
- Does NOT have to be repaid unless the home is sold within 3 years after the initial purchase.

The OLD home buyer tax credit from 2008
- Starting in 2010 these taxpayers received and will continue to receive for 15 years a notice from the IRS that lists the amount of the credit they received and the amount they have to repay as additional tax.  Taxpayers add this amount to their federal tax return which could result in more taxes due or a reduced refund.  The entire balance is due if the taxpayer sells the home before they have finished paying their balance.  The repayment is limited to the amount of gain on the sale, if the home is sold to an unrelated taxpayer. If there is no gain or if there is a loss on the sale, the remaining annual installments may be reduced or even eliminated.

If you sell your home, the repayment of these credits is NOT incorporated into any closing documents.  The credits are all part of a taxpayers Federal tax return, and are paid during tax season using specific forms, not during the sale of the home.  Forms and questions can be found at: http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Taxpayers are urged to consult a professional to determine the tax consequences of a sale.