Taxpayer asks:
If i understand this the right way if i bought my home between April 9 of 2008 and July 1 2009, you have to repay the amount back over 15 yrs. I bought my home and closed on it July 31, 2009. I got the credit on my taxes for 2009. If i understand it i am not within those dates so i dont have to repay this amount rite? Anything that you can tell me i would grately appreciate.. Thanks.
Taxgirl says:
It is complicated since we had three different iterations of the law in such a short time span. Here’s the scoop:
- The first version of the homebuyer’s credit is for taxpayers who purchased a home between April 9, 2008 and July 1, 2009. Those dates are the original dates for the credit – but Congress subsequently changed the terms of the credit effective January 1, 2009 (see #2 below) to be much more tax advantageous so realistically, nobody is claiming this version of the credit post-January 1, 2009. There is a repayment requirement for this credit, available only to first-time homebuyers. You must begin repaying the loan the second year after claiming the credit in 15 equal annual installments.
- The second version of the homebuyer’s credit is for taxpayers who purchased a home between January 1, 2009, and November 6, 2009. A credit of up to $8,000 is available for first-time homebuyers; the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly. There is no repayment requirement for this credit.
- The most recent version of the homebuyer’s credit is for taxpayers who purchased a home between November 6, 2009, and April 30, 2010. A credit of up to $8,000 is available for first-time homebuyers and a credit of up to $6,500 is available to other homebuyers; the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. There is no repayment requirement for this credit.
All sorts of restrictions and limitations apply so be sure and check with your tax professional for more information.
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
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