Are you among the 950,000 home owners who have to PAY BACK their tax credit?
That’s right…depending when your purchase date was depends on if the tax credit was a refund or if you have to repay the money. Leave it to the government to make life confusing.
Here’s the scoop: If you purchased your home in 2008 when the credit first began, you can claim up to 10% of the purchase price – a maximum of $7,500 – on your taxes BUT as a 15-year, no-interest loan.
If you took advantage of the extended tax credit and purchased in 2009, then you could claim the money as a refund, no repayment required.
Why the difference? Who knows. But I want to know what’s going to happen in 15 years when all these loans are supposed to be repaid and they’re not…
