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Federal Recapture Tax

 

The Federal Recapture Tax is a one-time federal tax on income that becomes owed when you sell a home that has appreciated and your eligibility changes for a federal subsidy you’ve already received. Our calculator can help you determine if you will owe the tax.

Understanding the Impact of the Federal Recapture Tax

  • What Is the Recapture Tax?

  • What to Consider

    You could owe a Recapture Tax if your loan was financed using tax-exempt bond funds or you received a Virginia Housing Mortgage Credit Certificate (MCC). If you sell your home in less than nine years, the home appreciates, and your income increases enough during that time, exceeding the allowable limits for the tax year in which you sell your home.

    That’s because Virginia Housing loans financed using tax-exempt bond funds or the MCC program are intended for people with low-to-moderate incomes, to help them afford their first home.

  • How to Plan Ahead

    Learn about the Federal Recapture Tax and how substantial increases in your income could affect your income tax liability.

Calculation Criteria

>The number of occupants has to be between 1 and 20

>The borrower income has to be between 1.00 than 1,000,000.00

Calculator Results

Years Your Projected Income
Years Your Projected Income
Years Your Projected Income
Years Your Projected Income