Cartus Consulting guides organizations of all sizes to the best solutions in global mobility and mobile workforce development. In this four-part series, Cartus Consulting Services looks at the top issues in U.S. home sale.
Should a company honor a relocating employee’s request to be reimbursed for the homebuyer tax credit?
The quick answer is no. It’s not recommended that a company reimburse the homebuyer tax credit. Transferees who received the homebuyer tax credit when they purchased their home often request reimbursement when notified about relocation. The current housing market works to the employee’s and company’s advantage because generally, if there is no gain on sale, the repayment of the tax credit is not due.
If a company does decide to reimburse the homebuyer tax credit, it is recommended that it provides a written statement to the employee with specific terms for the reimbursement. For example:
“Up to the full amount of the received tax credit will be reimbursed upon review of the original tax return where the credit was listed, and review of the tax return completed in the year after the sale.”
For more information, read the full Cartus Consulting Services | Top Issues in U.S. Home Sale document or listen to our podcast “An Update to the Homebuyer Tax Credit.”
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