Posted on: 12th Feb, 2007 01:03 pm
when recapture tax needs to be paid in a federally subsidized mortgage credit certificate loan
Hi Tim,
Welcome to Mortgagefit forum.
You will be required to pay recapture tax if you sell your home during the first nine years after receiving the MCC loan.
Form 8828 will be required to be filed to report recapture tax if:
1. You sold the home.
2. The mortgage loan as after December 31, 1990.
3. You received federal mortgage subsidy.
You need to attach it with Income Tax Return Form 1040 for the tax year in which the home is sold.
Colin
Welcome to Mortgagefit forum.
You will be required to pay recapture tax if you sell your home during the first nine years after receiving the MCC loan.
Form 8828 will be required to be filed to report recapture tax if:
1. You sold the home.
2. The mortgage loan as after December 31, 1990.
3. You received federal mortgage subsidy.
You need to attach it with Income Tax Return Form 1040 for the tax year in which the home is sold.
Colin
thanks colin, where can I get the 8828 form?
Tim, you can use this form - http://www.irs.gov/pub/irs-pdf/f8828.pdf
If you have any other question do not hesitate in sharing them.
Colin
If you have any other question do not hesitate in sharing them.
Colin