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Screen 8828 - Federal Mortgage Recapture (1040)

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Overview

Use this screen to complete Form 8828, Recapture of Federal Mortgage Subsidy. The calculated amount is included on Form 8828 on the total taxes line of Schedule 2 (Form 1040) with the literal "FMSR."
Taxpayers don't have to recapture any benefit if their mortgage loan was a qualified home improvement loan of not more than $15,000. This is increased to $150,000 if the loan was provided prior to 2011 and was used to alter, repair, or improve an existing owner-occupied residence damaged by reason of a federally-declared disaster.

Federal Mortgage Recapture

T, S, J
Use this field to identify which spouse the recapture tax applies to. If this field is left blank, UltraTax CS defaults to the taxpayer.

Form 8828 - Recapture of Federal Mortgage Subsidy

Use this section to enter information for Form 8828.
Indicate which Home screen to include sale information from.
Enter
X
 to indicate from which Home screen to include sale information.
note
Enter
X
 in the
Home #1
 or
Home #2
 fields to transfer the information in the
Date of sale or other disposition of interest in home
,
Selling price of home
,
Expense of sale
, and
Basis of home sold
 fields in the homescreen to the fields in this screen.
Address of property
Enter the address of the home that was sold. The street address is a mandatory field.
Type of Federal subsidy
Enter the code that represents the subsidy type, or use the fieldview to make the selection.
Name of bond or certificate issuer
Enter the State, Political subdivision (such as city or county), and Agency, if any, of the bond or certificate issuer.
Name / Address of original lending institution
Enter the name and address of the bank or other lender that provided the original mortgage.
Date of closing of original loan
Enter the date the federally subsidized mortgage loan was originally provided. Generally, this is the date of settlement on the home. However, if the loan was federally subsidized at a later date, enter that date. If this date is before January 1, 1991, the recapture tax doesn't apply and Form 8828 won't print with the return.
Date of sale or other disposition of interest in home
Enter the date the home was sold or otherwise disposed of. The date of sale is generally the date of settlement for the sale of the home.
note
Enter
X
 in the
Home #1
 or
Home #2
 fields to transfer the
Date of sale or other disposition of interest in home
,
Selling price of home
,
Expense of sale
, and
Basis of home sold
 entered in the homescreen to the fields in this screen.
Date of full repayment of original loan
Enter the date the original federally subsidized loan was fully repaid. This may be the same as the date of sale or other disposition of interest in the home.
Selling price of home
Enter the selling price of the home, not including any personal property items sold with the home. Report only the part of the sales price that represents the taxpayer's interest in the home.
note
Enter
X
 in the
Home #1
 or
Home #2
 fields to transfer the
Date of sale or other disposition of interest in home
,
Selling price of home
,
Expense of sale
, and
Basis of home sold
 entered in the homescreen to the fields in this screen.
Expense of sale
Use this field to enter any expenses incurred in selling the home allocable to the taxpayer's interest in the home. Don't include expenses incurred while preparing the home for sale.
note
Enter
X
 in the
Home #1
 or
Home #2
 fields to transfer the
Date of sale or other disposition of interest in home
,
Selling price of home
,
Expense of sale
, and
Basis of home sold
 entered in the homescreen to the fields in this screen.
Basis of home sold
Enter the adjusted basis of the home sold.
note
Enter
X
 in the
Home #1
 or
Home #2
 fields to transfer the
Date of sale or other disposition of interest in home
,
Selling price of home
,
Expense of sale
, and
Basis of home sold
 entered in the homescreen to the fields in this screen.
Share of gain paid to QSML governmental lender
If the home was sold at a gain within the nine-year recapture period, and a share of the gain was paid to the QSML governmental lender, enter the taxpayer's share of the gain to be reported on line 13. Complete the following fields:
Date share of gain paid to QSML governmental lender
 and
Explanation of calculation of share of gain
 to produce a statement which is included in the electronic file or paper return. Refer to the Form 8829 instructions for details.
Adjusted qualifying income
Enter the number from the table provided by the lender at the time the mortgage was provided.
Federally subsidized amount
Enter the federally subsidized amount. This amount should be on the notification provided by the bond issuer or lender. It is equal to 6.25 percent of the highest amount of the loan that was federally subsidized.
Holding period percentage
Enter the holding period percentage. This number can be found on the same line of the table used for adjusted qualifying income. If the loan was repaid within four years of the closing date, and before selling or otherwise disposing of the home, use the worksheet in the instructions to calculate the holding period percentage.
Form 4797 gain from sale while used as a rental property
Enter an amount to adjust modified adjusted gross income.

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