The good news of a TAX CREDIT for first time homebuyer in 2008 is now not so great. On the 2008 tax return, a tax credit of $7,500 was seen. In 2010, the taxpayer must start making annual repayments of $500, which continues for the next fifteen years, unless the house is sold earlier.
Compare this to the 2009 tax law and it is a crying shame that the 2008 law has not been amended. Check out my article on 2009 First-Time Homebuyer Credit for the details.
Please do not try to forget about picking up the repayment for 2010, as the IRS has this all computerized.
Give me a call if you would like to discuss.