be 6.67% of the credit amount each year. Thus, a buyer who qualifies for the full $7500 credit will repay
$502.50 each year. There will be no interest charge on outstanding balances, so you truly don't have to repay it until you sell the home.
When the person who used the credit sells the home, any amount of tax credit that has not been repaid
will be due in the year of sale. For example, if an individual still â€œowedâ€ $4000 in repayments and
realized $25,000 of proceeds from the sale, the $25,000 of seller proceeds would be reduced to $21,000
and $4000 will be remitted to the IRS.
If the gain on the sale is less than the amount that must be repaid, part of the liability is forgiven. For
example, if the individual still â€œowedâ€ $4000 but the gain on the sale was only $3500, then the seller
would not be required to repay the IRS the $500 shortfall. If there was no gain or even a loss, then the
remaining $4000 would not be repaid.
I wrote a post on all the details awhile back here if you want some more info: http://donedam.com/your-750000-tax-rebate-hr-3221-the-%E2%80
Let me know if you have any other questions.