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Updated over 14 years ago,
Will land trust invoke repaying the 8000 tax credit?
I understand the $8000 tax credit must be repaid if the owner sells the property within 3 years. I have an older relative who just bought a house and got the credit. He plans to occupy the house as his primary residence, but for estate planning purposes, he wants to put his house into a land trust with himself as the beneficiary so he can designate a successor benefiary and avoid probate if/when he dies.
My question is, if he transfers the property title into the land trust now, is this title transfer considered a sale so as to invoke repayment of the tax credit?