First time homebuyer tax credit?

Sig220_Ruger77

I have looked on the web, but can't seem to find a straight answer on this one. I know that they are offering the tax credit of 10% up to $8,000 to first time home buyers this year, but I have a couple of questions.

1. How exactly do they deal with getting this paid back? I have heard everything from you don't pay it back(0% of me believes this) to you have to pay it back in a year. The most logical explanation I have heard was that you pay so much back every year(out of you tax return) for so many years.

2. Does the money you recieve have to be put towards the house you purchase? Say I get $8,000 and owe $2,500 on my car. Couldn't I just put $2,500 towards my car and the rest towards the house?

Jon

Beeramid

Ask your tax guy, he can tell you all about it. It would come in along with your tax return. You can spend it for whatever you like since its credited to your account. According to our tax guy you are not required to pay it back.

medic07

Jon
If you buy a house and are a first time home buyer between Jan and Dec 1st of this year you qualify for the 10% of purchase price ($8k max). This does not have to be paid back.

Last years incentive of $7500 had to be paid back at $500 per year over 15 years.

Here is the IRS link
http://www.irs.gov/newsroom/article/0,,id=204671,00.html

Sig220_Ruger77

Thanks very much guys![:)] That link had exactly what I was looking for.

Jon

Johnnylikesguns

quote:Originally posted by medic07
Jon
If you buy a house and are a first time home buyer between Jan and Dec 1st of this year you qualify for the 10% of purchase price ($8k max). This does not have to be paid back.

Last years incentive of $7500 had to be paid back at $500 per year over 15 years.

Here is the IRS link
http://www.irs.gov/newsroom/article/0,,id=204671,00.html



100% correct.