The fine print of the first-time home-buyer tax credit has a lot of people stumped as tax season approaches and the loan repayment cycle begins. An article in the Washington Post sums up some of the big questions and conundrums.
"It was never fair to call the original first-time buyer stimulus a credit. It was an interest-free loan. Those who took the credit are required to repay the government over 15 years in equal installments for any amount received. So if you qualified for the maximum credit of $7,500, this means a yearly loan payment of $500. The loan/credit applied only to homes purchased after April 8, 2008, and before Jan. 1, 2009."
OPEN ARTICLE TO READ MORE
If you're interested in the rest of the article, attached is the link.
http://www.washingtonpost.com/business/economy/remember-that-7500-first-time-homebuyer-credit-its-now-an-irs-headache/2011/04/05/AF5zpwqC_story.html
If you took advantage of the tax credit, remember to look into the terms so you're ready for tax season! If you have any questions about the process, let the Van Cleave Team know. We're here to help with all of your Real Estate needs.
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