Taxes (TAX)

[ypsiCPA]

Thanks for the additional info, especially as most homes aren't kept for 15 years.

If you qualify for the credit, it makes sense to claim it - regardless of uncertainty of how long you'll be in the home. It remains an interest-free loan, just the repayment can be accelerated.

Note the exceptions Generic posted:
Exceptions. The following are exceptions to the
repayment rule.

- If you sell the home to someone who is not related to
you, the repayment in the year of sale is limited to the
amount of gain on the sale. (See item 8 under Who
Cannot Claim the Credit for the definition of a related
person.) When figuring the gain, reduce the adjusted
basis of the home by the amount of the credit you did not
repay.

- If the home is destroyed, condemned, or disposed of
under threat of condemnation, and you acquire a new
main home within 2 years of the event, you continue to
pay the installments over the remainder of the 15-year
repayment period.

- If, as part of a divorce settlement, the home is
transferred to a spouse or former spouse, the spouse
who receives the home is responsible for making all
subsequent installment payments.

- If you die, any remaining annual installments are not
due. If you filed a joint return and then you die, your
surviving spouse would be required to repay his or her
half of the remaining repayment amount.