Homebuyers’ tax credit program creates tax liability
Feb 2011 24

If you took advantage of the federal government’s homebuyers’ tax credit program back in 2008, I’ve got bad news for you. You owe the IRS some money.

As pointed out in a Real Deal article posted online, homebuyers who received tax credits during the government’s first (of three) stimulus package are required to pay that money back.

… [F]or first-time homebuyers who purchased a home between April and December of 2008 and claimed a different federal tax credit, they are faced a tax liability.

“If you claimed the first-time homebuyer credit on your federal tax return for the home you purchased in 2008, and you owned and used the home as your main home during all of 2010, you are unfortunately required to start repaying the credit back,” said Ross Rizzo, a tax partner at Salibello & Broder.

For most people, the repayment will be spread over 15 years, in equal increments.

Basically, the advice is, talk to your tax accountant or attorney. Or, just call the IRS. I’m sure they can explain it all to you.

(BTW, if you took advantage of the second or third stimulus program, you’re most likely exempt from having to pay back the money. Again, check with a professional.)

More information: Is the first-time homebuyer’s tax credit really just a tax liability? – The Real Deal

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