You may need to repay your Tax Credit???

By
Real Estate Agent with Century 21 New Millennium 636665

OK so I heard about this story and it made my skin crawl.. Can you believe it. People that brought their home in 2008 were given their tax credit in the form of a loan, in 2009 the credit was expanded to a full credit.

 

PLEASE RETURN YOUR TAX CREDIT!

 

Posted by

Century 21 New Millennium

Chris Hill  Chris.hill@c21nm.com

301-862-2169 (Work) 410-610-9032(Cell)  301-862-2179 (Fax)

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tax credit

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Rainer
69,132
Donald Tepper
Long and Foster

Sure, I can believe it. Those were the terms for the 2008 "tax credit." In 2009, it was changed into a real tax credit (not a loan), and was expanded to include long-time home owners. The terminology was misleading, but it's very clearly posted online at the IRS site. Besides, don't we always caution buyers and sellers that we're not tax experts and that they should check with their own tax experts?

I'd be more concerned if the two years/policies had been reversed--if it'd started out as a true credit and then (without too much fanfare) just converted into a no-interest loan. But that wasn't the case here. It started off as a no-interest loan, then was expanded into a true tax credit.

CNN (via GAO) raises this as a possible problem. Whether it actually is or not remains to be seen. But at some point, home buyers are going to have to take responsibility for their actions. (Many already have.) If they agreed to a 15-year no-interest loan, then--just speaking for myself--I don't want to get into the business of loan forgiveness.

September 14, 2010 03:54 PM
Rainmaker
616,842
Deborah Byron Leffler BzyBee Real Estate Lady!
Keller Williams Realty Boise

I agree with the others...you will have those who are frustrated with this...and it doesn't seem fair....but they did agree to it when they took it....darn it!!!

September 14, 2010 03:57 PM
Rainmaker
120,141
Chris Hill
Your Southern Maryland Real Estate Professional
Century 21 New Millennium

I am not questioning the terms of the program, only the planning and implementation of the payback. The fed's just chose a payback plan and said... "this is it!" The real story is... that the economy hasn't recovered in the fashion predicted at the time, now what do you do for the payback? I think a strategic plan including and "exit" strategy would have been due here. Thanks for everyone for their comments.

September 14, 2010 04:01 PM
Rainmaker
427,288
E.J. "Mike" Carlier
Lakeville MN
CENTURY 21 MarketLink Realty

What about the "poor buyers" from 2007 who got neither a credit nor a loan?  For that matter, what about the people who did not buy a home?  They got nothing!  Stinkin' Gov'ment!

 

September 14, 2010 04:27 PM
Rainer
44,265
Mark Hitz
Keller Williams

Chris - I am confused as to what makes your skin crawl

If (and I use the term IF); If a buyer chose to take the original tax credit then they recieved $7500 that they pay back $500 every year for 15 years interest free. It was pretty clear how it worked.  

I'm with Mike's comment above. Damn government thinks they can just stop giving home buyers free money in 2010? What's that all about?  They need to just keep giving people free money and racking up the deficit that my children are going to have to deal with.

Actually they should just give every Realtor $8k and require us to spend it in America to revitalize the economy.

There are very few "non political" economists who think any of the various tax credits were worthwhile.

September 14, 2010 10:52 PM
Anonymous
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Rainmaker
120,141

Chris Hill

Your Southern Maryland Real Estate Professional
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