Do I have to pay back the $8000 tax credit?

ByKeith May

Do I have to pay back the $8000 tax credit?

The 3 year time frame for paying back the Tax Credit from 2009 is coming up.  This is a question on a lot of peoples minds right now. Check out the YouTube video here!

Do I have to pay the homebuyer tax credit back? How much is the credit for?  $7,500 or $8,000? It depends. For homes purchased in 2008, the $7,500 credit (or  10% of purchase price, if less) operates much like an interest-free loan. You  generally can repay it equal installments over a 15-year period unless you move  out or sell the home earlier than that. The maximum credit is reduced to $3,750  for married individuals filing separately. For homes purchased in 2009, you must  repay the $8,000 credit (or 10% of purchase price, if less) only if the home  ceases to be your main home within the 36-month period beginning on the purchase  date. The maximum credit is reduced to $4,000 for married individuals filing  separately.

Keith May, Keller Williams, 405-509-6111

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