The credit cannot be taken if your mortgage is funded with tax free bonds that states and localities issue to give below-market loans to moderate-income.

A job-related move will accelerate recapture. So make sure that you take the higher tax bill into account if you are transferred. The credit already is recouped over a 15-year period, starting two years after the year when the credit is claimed. But the credit is fully recaptured once the home is no longer your primary residence.

And there’s a rub involving divorce-related transfers of primary homes. Although the transfer doesn’t immediately trigger accelerated recapture of the credit, the ex-spouse who gets the home becomes liable for paying the credit recapture tax.

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 Tags: Real Estate, Mortgage, San Jose, first time buyer

Article's Author

Clay Edwards
Rooftop Lending
San Jose, CA

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