New Tax Law - Credit For First Time Home Buyers

There is a new tax law for some people who have purchased a new home in 2008. This is a credit which is actually a temporary credit. What that means is that after two years of claiming the credit, you will be required to begin paying it back. Whilst this may sound like a good deal, you do need to do a bit of research in to it first. This repayment term is for 15 years and begins in 2010 if you claim this credit in 2008. By taking this credit you are essentially writing yourself a loan.

To qualify for this credit, the closing date of your new home would have had to be after the eighth day in April of 2008. Another stipulation for this new tax law is that you must not have owned any other house for three years prior to the date you are taking the credit for. If you decide to sell the home before the 15 year term, the balance will be required to be paid in full. The only exception to this rule is that if your profit from the sale is less than the debt owed for the remainder.