Homebuyers begin to repay tax credit

TRD New York /
Feb.February 15, 2011 01:04 PM

Most homebuyers who claimed the federal tax credit of up to $7,500 for buying their first home in 2008 are required to start repaying the credit in 15 annual installments, beginning with their 2010 tax returns, according to the National Association of Homebuilders. The credit — which was offered for qualified home purchases in 2008, 2009 and 2010 — has different repayment rules depending on when the home was purchased and as tax season approaches, this may cause confusion. “It is important that homebuyers consult a qualified tax professional to make sure they are receiving all the tax benefits as well as fulfilling the obligations of their home purchase,” said Bob Nielsen, chairman of the NAHB and a home builder from Reno, Nev. The Internal Revenue Service is sending a letter to taxpayers who claimed the credit that explains the repayment options. The credit for homes purchased in 2009 and 2010 does not have a repayment requirement unless the home ceases to be used as the taxpayer’s principal residence within three years of the purchase. The homebuyer tax credit program expired for the majority of Americans in 2010, with some exceptions, such as service members who were on duty. TRD


Related Articles

arrow_forward_ios
Taxpayers in New York have four days to try beating cap on state, local deductions

Taxpayers in New York have four days to try beating cap on state, local deductions

US homebuilder confidence drops slightly from 18-year high

US homebuilder confidence drops slightly from 18-year high

DC real estate lobby apprehensive about the Republican tax plans

DC real estate lobby apprehensive about the Republican tax plans

US homebuilder confidence dips to an eight-month low

US homebuilder confidence dips to an
eight-month low

Builder confidence reaches its highest reading since 2005

Builder confidence reaches its highest reading since 2005

Placeholder image

IRS may be stepping up scrutiny of mortgage deductions

US builder confidence in single-family homes hits 11-year high

US builder confidence in single-family homes hits 11-year high

Tepid construction in September points to multifamily tumble

Tepid construction in September points to multifamily tumble

arrow_forward_ios