Most home buyers 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.
The credit—some form of which was offered for qualified home purchases in 2008, 2009 and 2010—has different repayment rules depending on when and under what circumstances the home was purchased. As tax season approaches, this may cause confusion among home buyers who received the tax credit.
If you took advantage of the tax credit you’ll want to read further.
Submitted by Minneapolis Realtor, Mary Rugani.