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What is the Recapture Tax and how does it work?

recapture tax
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What is the Recapture Tax and how does it work?

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In rare circumstances, CHFA mortgage loans may be subject to the Federal Recapture Tax at the time the property is sold. The tax might apply if a borrower sells his or her home within nine years of the purchase date, makes a profit on the sale and has an income that exceeds federal recapture tax limits at the time of the sale.

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