Uncle Sam has a reminder for some people who took advantage of the first-time homebuyer tax credit three years ago: He wants his money back.
Americans who bought homes in 2008 using the government’s tax credit will be required to start repaying the credit beginning with their 2010 tax return, according to the IRS.
In an odd twist, those who took advantage of a nearly identical tax credit in 2009 or 2010 will not be required to pay it back.
Under the terms of the 2008 tax credit, the credit must be paid back over a 15-year period, beginning with this year’s return. That means anyone who took the maximum $7,500 credit will have to add $500 to their income tax liability for 15 years. If you sell your house before the 15 years are up, the entire tax credit bill will be due the year the house is sold.
- Tax Policy Blog, Paying Back First-Time Homebuyer Tax Credits
- Tax Update Blog, 2008 Homebuyer Credits: Time to Pay Them Back
3 responses to “Time to Start Repaying Your 2008 First-Time Homebuyer’s Tax Credit”
2008 Homebuyer credits: time to pay them back
The first version of the “First Time Homebuyer Credit” had an unusual feature: it has to be paid back. If…
2008 Homebuyer credits: time to pay them back
The first version of the “First Time Homebuyer Credit” had an unusual feature: it has to be paid back. If…
2008 Homebuyer credits: time to pay them back
The first version of the “First Time Homebuyer Credit” had an unusual feature: it has to be paid back. If…
2008 Homebuyer credits: time to pay them back
The first version of the “First Time Homebuyer Credit” had an unusual feature: it has to be paid back. If…
2008 Homebuyer credits: time to pay them back
The first version of the “First Time Homebuyer Credit” had an unusual feature: it has to be paid back. If…
2008 Homebuyer credits: time to pay them back
The first version of the “First Time Homebuyer Credit” had an unusual feature: it has to be paid back. If…
2008 Homebuyer credits: time to pay them back
The first version of the “First Time Homebuyer Credit” had an unusual feature: it has to be paid back. If…
2008 Homebuyer credits: time to pay them back
The first version of the “First Time Homebuyer Credit” had an unusual feature: it has to be paid back. If…
2008 Homebuyer credits: time to pay them back
The first version of the “First Time Homebuyer Credit” had an unusual feature: it has to be paid back. If…