The Big Payback: $7500 Taxpayer Credit....It's Time to Pay Up

By
Real Estate Agent with Keller Williams Realty

The Big Payback: $7500 Taxpayer Credit....It's Time to Pay Up

Well the time has finally come for the Taypayer credit recipients to payback that $7500 incentive.

Not everyone has to pay that money back though.  Apparently only those who received the credit during the period of April 1, 2008 through July 1, 2009 will have to pay back the funds used to make their home purchase possible (or at least served as an incentive to buy).

Some may say that they didn't know it had to be paid back, while others were fully prepared.  Memory often fails us, but unfortunately the government is not so forgiving.

The good news is that it can be paid back over a 15 year period (paying back $500 per year) until paid back in full.  The other good news is that it's tax free.

There is a bright side to this damper:  Would you have purchased that home that you love so much had it not been for the tax credit?

Please consult with your tax professional for advice.  And then get ready for

 

 

 

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7500 taxpayer credit

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Ambassador
1,620,449
Richard Weisser
Richard Weisser Coweta Newnan Homes for Sale
Better Homes and Gardens Real Estate Metro Brokers

Charita...

I guess that I am glad that the treasury is getting the money back, but I'll bet that there are some not so happy campers out there!

February 26, 2011 09:23 AM
Rainer
135,133
Linda Humphrey
CRS, Broker/Owner HHC Realty
Humphrey Home Connections Realty, Reno, Nevada

Hi Charita - I fished out the letter from our tax stuff and it is dated December 27, 2010. It is entitled "Repaying your First-Time Homebuyer Credit". Provides a summary of credit received, how much to pay this year, and mentions a Form 5405 which must be attached to your tax return. Then it discusses the fact that if the home is no longer your primary residence (including through foreclosure!!), how you have to pay the balance in full immediately. Never miss a punch, that ole IRS!

February 26, 2011 11:24 AM
Ambassador
681,465
Charita Cadenhead
Serving Jefferson and Shelby Counties (Alabama)
Keller Williams Realty

Thanks Michael and I'm sure you're right.

Richard I can envision smoke coming out of a lot of people's ears.

Linda I really appreciate you coming back and respondin.  I hope others read it too.  BTW my birthday is on December 27th and that would not have been a present that I would have enjoyed receiving.

February 26, 2011 12:16 PM
Rainmaker
224,725
Susan Jackson
America's Network Realty Group, Inc

I am sure many buyers have forgotten about the payaback, once they settled in their homes.

Loved the James Brown video.

February 26, 2011 05:04 PM
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681,465
Charita Cadenhead
Serving Jefferson and Shelby Counties (Alabama)
Keller Williams Realty

Thanks Susan.  Linda (#50) says the government didn't forget and sent out reminder letters.  Although she says her son's letter is dated December 27th, the government probably could have given an earlier warning.

February 27, 2011 03:59 PM
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Charita Cadenhead

Serving Jefferson and Shelby Counties (Alabama)
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