Mills
01-30-2014, 20:59
Need a little help here guys, trying to find out if anyone has been through a similar situation...........
In 2008, Pre market crash I purchased a home and received the $7500 interest free loan from uncle sam when I filed my taxes. I figured, what the hell I will take and pay it back interest free over the course of 15 years.
So.....I started paying it back in the 2010 tax year at $500 and have done so in 2011 and 2012. The catch is that I got orders to 5th Group at the end of 2010 and moved to Campbell and was unable to sell my house, so I put it up for rent. Whilst having my taxes done at the center on post, no one really did any diligence in regards to the regulation on the credit and PCS moves, so I just took their word for it.
Today, I went to file my 2013 taxes at HR Block because I am not going back to post after having to file 3 amended returns for previous mistakes. They noticed that I was paying the tax credit back and were somewhat shocked. Then opened the tax regulation book and explained to me that for tax year 2011 I should have been exempt from repaying the home credit since I moved due to PCS orders and that home was no longer my primary residence.
In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community.
This relief applies where a home is sold or stops being the taxpayer’s principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual’s spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.
The staff at HR Block all agrees that I should not have been paying that $500 per year back after the 2010 tax year due to being exempt from repaying it. I guess i was skeptical because I turned the house into a rental, however turning the house into a rental qualifies as the home not being your main residence...........
So who knows, It looks to me like it is all up to interpretation.
Anyone have a situation like this and have any advice on what to do? I am thinking that if the norm seems to be that persons who fall within this category are exempt from repayment, then I am going to file amended returns for 2011 and 2012 and try and recoup that $1000. Along with never having to deal with this mess again.
If I only could have waited 6 months later, I could have gotten me some of dat free Obama money
Thanks in advance.
In 2008, Pre market crash I purchased a home and received the $7500 interest free loan from uncle sam when I filed my taxes. I figured, what the hell I will take and pay it back interest free over the course of 15 years.
So.....I started paying it back in the 2010 tax year at $500 and have done so in 2011 and 2012. The catch is that I got orders to 5th Group at the end of 2010 and moved to Campbell and was unable to sell my house, so I put it up for rent. Whilst having my taxes done at the center on post, no one really did any diligence in regards to the regulation on the credit and PCS moves, so I just took their word for it.
Today, I went to file my 2013 taxes at HR Block because I am not going back to post after having to file 3 amended returns for previous mistakes. They noticed that I was paying the tax credit back and were somewhat shocked. Then opened the tax regulation book and explained to me that for tax year 2011 I should have been exempt from repaying the home credit since I moved due to PCS orders and that home was no longer my primary residence.
In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community.
This relief applies where a home is sold or stops being the taxpayer’s principal residence after Dec. 31, 2008, in connection with government orders received by the individual (or the individual’s spouse) for qualified official extended duty service. The credit is still allowable even if this happens during the year of purchase. Qualified official extended duty is any period of extended duty while serving at a place of duty at least 50 miles away from the taxpayer’s principal residence (whether inside or outside the U.S.) or while residing under government orders in government quarters. Extended duty is defined as any period of duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period.
The staff at HR Block all agrees that I should not have been paying that $500 per year back after the 2010 tax year due to being exempt from repaying it. I guess i was skeptical because I turned the house into a rental, however turning the house into a rental qualifies as the home not being your main residence...........
So who knows, It looks to me like it is all up to interpretation.
Anyone have a situation like this and have any advice on what to do? I am thinking that if the norm seems to be that persons who fall within this category are exempt from repayment, then I am going to file amended returns for 2011 and 2012 and try and recoup that $1000. Along with never having to deal with this mess again.
If I only could have waited 6 months later, I could have gotten me some of dat free Obama money
Thanks in advance.