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Did You Use The "First Time Homebuyer Credit" To Buy Your Home? Time To Start Repaying It

By
Real Estate Agent with Karen Parsons-Fiddler, Broker 949-510-2395 BRE# 01494165

Repaying The First Time Homebuyer Credit in 2010 Taxes

 

Did you use the "First Time Homebuyer Tax Credit" to help buy your Mission Viejo home in 2008? If so, you now need to start repaying it.

The Credit was not a gift, but a loan!

Many people misunderstood this fact....that it's repayable over time. Beginning on the 2010 tax returns, the borrower will start making payments. It's an interest free payment due over 15 equal annual amounts.

Anyone who has sold their Mission Viejo home might have to repay the entire thing, if they bought the home in 2008, 2009 or 2010 so check with your Tax Professional.

The IRS has a tool available online for you to determine the amount of money due this tax year. You will need your Social Security number, date of birth and complete address to access this information. The IRS states that nothing will be mailed to you.

To access the IRS tool, visit the IRS website....Click Here For Direct Access.

Comments(10)

Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Karen I thought the earlier credit was taxable - not the 2008 on on. Whoa....there was so much misinformaton about that out there.  

Mar 21, 2012 11:21 AM
Melissa Brown
Helen Adams Realty - Charlotte, NC
Realtor - South Charlotte NC Homes for Sale

Karen, great idea for a blog post.  I feel bad for the folks who bought during the "repayable" tax credit year - then the later ones got the freebie.  Doesn't seem quite fair!

Mar 21, 2012 11:45 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Anna: Those who bought in 2008 are those who have to be paid back. 2009 and 2010 don't have to....under most circumstances.

Melissa: Me too..I think it's ridiculous that they are holding them to it and not the later ones. But that's our tax system for us.

Mar 21, 2012 12:03 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Yepl  I bet this one is catching a lot of folks with their pants down, so to speak.  

Mar 21, 2012 12:11 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Hi Karen,

I guess it shouldn't be a surprise..that's our government at work...you know the one "for the people" and "by the people!"

Mar 21, 2012 12:24 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

I am sure a lot of people either didn't realize they were going to have to pay this back, or conveniently forgot.  This is a good reminder.  Better they do it voluntarily :)

Mar 21, 2012 03:02 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Karen - I read the article in "California Real Estate," the magazine published by CAR.  While the idea sounded good back in 2008, it's hard to believe that it is already time to pay the piper.  Still, the credits did provide an avenue for those who may not have bought, to obtain a home.

Mar 21, 2012 10:40 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

A family member of mine called me the other day completely surprised that they had to pay it back.  Great reminder Karen!  

Mar 21, 2012 10:41 PM
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

There is no such thing as "a free Lunch" But this program was good to get folks started as so stands on its own merits. Thanks for the post . I may start getting phone calls now I am informed

Mar 22, 2012 01:02 AM
Dana Hollish Hill
Hollish Hill Group, JPAR Stellar Living - Bethesda, MD
REALTOR * Broker * Coach
Thanks for the reminder. I am going to check into the details and get them out to my clients.
Mar 22, 2012 02:03 AM