Homeowner Tax Credit
This year homebuyers who took the $7,500 federal tax credit to buy their first homes in 2008 have to begin paying it back. This credit was intended to be like an interest-free loan and those who took the maximum credit of $7,500 in 2008 must add $500 each year for the next fifteen years to their income tax liability. Reminders are also being sent out by the IRS to those who have to start paying back their credit this year. However, due to a change by the government, those who waited until 2009 or 2010 to buy a home that qualified for the credit do not have to pay it back if the buyer remains in the house for at least three years. The stimulus bill enacted in February 2009 included the $8,000, no pay-back tax credit to help jump-start the wavering housing market. The program in 2009 and 2010 was also extended to repeat home-buyers that met other program criteria and was limited to a maximum of $6,500.
To read more on this article, visit Housing tax credit payback to begin.
If you have any questions or would like more information, please contact Wood, Atter & Wolf, P.A., in Jacksonville and Ponte Vedra Beach, Florida.
