| Understanding
Federal Recapture Recapture is a tax that you could have to pay on your federal income tax returns if, within nine years of purchasing a home financed with one of VHDA's First-time Homebuyer (tax-exempt bond) Programs, you sell the property. The majority of VHDA's borrowers are not subject to this tax. Will Recapture Affect Me? 1) You sell your home within nine years... 2) Your income increases substantially... This graph displays the median household income of a VHDA borrower increasing by 5% per year. You can see that this is significantly below the recapture income limits and would not be subject to Recapture. In order for Federal Recapture to apply, your income (the red line) would have to exceed the recapture income limit (blue line) in the year you sell your home. |
| To estimate the potential of Recapture based on your situation, enter the information below and click 'SUBMIT.' | |||||
| Select the city or county where the property is located:* | Enter number of property occupants: |
Enter annual income of all adults who occupy the property: |
Enter borrower(s)
likely annual salary increase as a percentage (default is 5%): |
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| *Recapture Income
Limits are significantly higher in Federal Targeted Areas. All Federal
Targeted Areas are not reflected in the calculation.Use the Federal
Targeted Area Seach Tool to determine Federal Targeted Area status
for the location of a particlar property. Click here for additional information regarding the Recapture calculation and current Recapture Chart |
| Special thanks to the Wisconsin Housing and Economic Development Authority for providing the functionality for this calculator. |