Travis, a reader of the First Weber blog, asked us a question on December 2, 2009:
"I closed on a home in May of 2008. I received a 10% first time homebuyers tax credit. Since this they have released a tax credit that states it does not have to be payed back in any way. I have not found any information on mine to see if they had different terms applied. Do you know anything about this?"
Thank you for this excellent question. An article updated on November 24, 2009 on irs.gov states:
"For 2008 Home Purchases
The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year."
There is no mention of any change to the repayment requirement. You can read the entire rules straight from irs.gov here. The repayment is explained here, also from irs.gov
You should also consult with your tax advisor.
If you have a real estate question, please let us know.
