What is irs Form 8828?
Use Form 8828 to figure and report the recapture tax on the mortgage subsidy if you sold or otherwise disposed of your federally subsidized home.
What is recapture of federal mortgage subsidy?
A federal subsidy recapture is the repayment of a mortgage subsidy if the home is disposed of within nine years of receiving a federally subsidized loan. Federal mortgage subsidies occur when a homebuyer receives a lower interest rate or a mortgage credit certificate.
How much tax do I owe recapture?
What is the maximum recapture tax? The maximum recapture tax is 6.25% of the original principal balance of the loan or 50% of the gain on the sale of your home whichever is less.
What is adjusted qualifying income?
Your adjusted qualifying income is found in the column of the table that corresponds to your family size (number of family members living with you at the time of the sale) on the line that corresponds to the number of full and partial years that you held your home.
Where do I file Form 8822?
If you checked the box on line 2, send Form 8822 to: Department of the Treasury, Internal Revenue Service Center, Kansas City, MO 64999-0023.
How does USDA subsidy recapture work?
The Agency’s subsidy recapture policy requires borrowers to repay some or all of the subsidy received over the life of the loan. When borrowers pay off the principal and interest balance of their loan, subsidy recapture must be calculated and the borrower informed of the recapture amount.
How does USDA recapture work?
Payment subsidies received on loans approved after October 1, 1979 are subject to recapture. This means that when the property is sold, transferred, or no longer occupied by the customer, all or part of the subsidy granted must be repaid to the government.
How do you calculate recapture?
Start with your UCC in any class and add the amount you spent on new property in the class. Then, subtract the proceeds you earned from the disposition of property in that class.
Can I change my address with IRS online?
Notifying the IRS of an address change electronically is possible but only under certain circumstances. If your refund check was returned to the IRS, then an option on the IRS’s “Where’s My Refund” website will become available to change your address.
Can I fill out Form 8822 online?
No. A Form 8822 cannot be e-filed.