Problemafter renting an apartment for five years todd and, Ask an Expert

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Problem:

After renting an apartment for five years, Todd and Diane purchased a new home on July 1, 2008. On their 2008 joint tax return, they claimed a $7,440 first-time home buyer credit.

Answer the following questions relating to the credit.

Question 1: Assuming they still live in the home, what amount of credit must Todd and Diane repay with their 2013 tax return?

Question 2: Assuming they sell the home in August 2013 for a $34,430 gain, what amount of credit must they pay back with their 2013 tax return?

Question 3: Assuming they sell the home in August 2013 for a $5,220 gain, what amount of credit must they pay back with their 2013 tax return?

Note: Please show the work not just the answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162634

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