Jrice, Other/Just Looking in 51640

first time home buyers credit : repaid or not?

Asked by Jrice, 51640 Sat Dec 26, 2009

my husband and i closed on our house june 1 2009. we paid $65,000 and are expecting a $6,500 tax credit. im confused about the credit. some places say it is to be repaid others say it is not. i was just wondering if we would have to repay it, and how we would do that?

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Al Akerman, Mortgage Broker Or Lender, Lakewood, NJ
Sat Dec 26, 2009
You do not have to repay it unless you move out within three years. There was an old $7500 credit in 08 that had to be paid back over 15 years ($500 each year when you file taxes) but yours does not have to be paid back.

Hope this was helpful.

Good luck.
1 vote
Debra (Debbi…, Agent, Livingston, NJ
Fri Jul 2, 2010
Carol - to the best of my knowledge, the entire credit would have to be repaid if the home is sold in less than 3 years - there is no prorating.
0 votes
Carol Andres…, , Pittsburgh, PA
Fri Jul 2, 2010
If a buyer purchased in 08 and is now selling (less than 3 years), does anyone know if the full amount must be repaid? Is there any prorating?
0 votes
Dave Griswol…, Agent, Bridgewater, NJ
Sun Dec 27, 2009
HI Jrice, I was about to answer your question then good thing I read those below.
I can only say that in my professional opinion AL is right.

Web Reference:  http://WWW.URHOMEREALTY.NET
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Sun Dec 27, 2009
Simple answer..............I ditto what Al said...........No, you do not have to repay the credit...as long as you live in the home, as your primary residence, for 3 years.

Enjoy the credit!
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat Dec 26, 2009
Check with your Tax Consultant for an accurate answer regarding your situation---Credit was expanded to grant up to $6,500 to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010; must be the next primary residence and current owners must have lived in the house for 5 consecutive years during the past 8 years. You will need an executed contract before May 1, 2010 and must close the deal before the end of June 2010. Income limits are the same as first time buyers. Credit can only be claimed for a primary residence bought for less than $800,000 and buyer must live in the house for 3 or more years after purchase or credit will need to be paid back—check IRS Code for qualifying conditions.

0 votes
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