Form 8828 is used to calculate and report a special tax that may be owed if someone sold or got rid of their home, which was purchased with the help of a federal mortgage subsidy.
If a taxpayer sold or got rid of this home within the first nine years of buying it with a special government loan (known as a [QMB] Qualified Mortgage Bond or [MCC] Mortgage Credit Certificate loan), they might have to pay back part or all of the subsidy by paying additional federal income tax in the year the home was sold or disposed of.
Form 8828 should be filed only if ALL the following apply:
- The taxpayer has a mortgage loan that was originally provided after December 1, 1990
- The taxpayer sold or disposed of their home (resulting in a gain or not)
- The taxpayer received a federal mortgage subsidy
Program entry
To access Form 8828 within the program, follow this path
- Federal
- Other Taxes
- Other Additional Taxes
- Recapture of Federal Mortgage Subsidy