Dr Gibson's daughter and her partner lived in the flat rent free
Norwich North MP Ian Gibson has been referred to a panel which could remove his right to stand as a Labour candidate amid expenses claims.
The Daily Telegraph said Dr Gibson claimed for a flat which his daughter and her partner lived in rent-free.
The MP told BBC Look East that he shared the flat with his daughter for a time, claiming mortgage payments on expenses.
Dr Gibson said he would stand down if his constituents demanded it.
The Telegraph said that while the MP was claiming an allowance for the property, which he bought in 1999, his daughter and her partner lived there full-time without paying rent.
In April last year he said he sold the flat to them for £162,000 after buying it for £195,000.
'Home for years'
Dr Gibson said that he had the flat valued at the time of the sale for between £250,000 and £300,000.
"I cannot wait to put in my tax return to see how they assess it," he said.
"I may make a loss and may have to sell my main home."
Dr Gibson told the BBC that the flat "was my home for many years".
"The mortgage was coming to an end. I would have had to sell it anyway... and I will pay the capital gains tax."
He said that when he sold the flat, because he wanted to move to a rented flat nearer Westminster, "prices were coming down".
Dr Gibson said he would listen to the opinions of constituents and if they wanted him to resign, he would do so.
He said if his constituents wanted him to step down "then fine, so be it".
"I don't mind getting beaten in an election, but I am quite happy to step down too... and admit that the constituents thought it was one step too far," he said.