My Lubbock TX Real Estate Blog

Late last year, Congress passed a tax credit for first time home buyers.  That was a $7,500 tax credit that was basically an interest-free loan that had to be paid back.

The newest $8,000 tax credit also has a potential "gotcha clause".  According to the National Association of REALTORS® website, any homebuyer that takes the $8,000 tax credit must repay 100% of the $8,000 if they sell that home within 3 years.

The link to the NAR website article is:  http://www.realtor.org/government_affairs/gapublic/american_recovery_reinvestment_act_home#taxcredit

The link to a great comparison chart comparing the 2008 & 2009 tax rebates is:  http://www.realtor.org/wps/wcm/connect/b6911d004d24c833931bf726a9949436/government_affairs_tax_credit_chart_022309.pdf?MOD=AJPERES&CACHEID=b6911d004d24c833931bf726a9949436

While the 2009 tax rebate is an overall improvement, it can be a nightmare for a home seller who has an unexpected reason to sell their house within the first 3 years.  Since I'm not a tax expert, you definitely want to consult your accountant before claiming the tax credit.  Personally, I chose not to claim the $7,500 tax credit when I bought my home in 2008.  Leave it to congress to mess up another perfect opportunity to really help homebuyers.

That's my opinion.  I would enjoy hearing your opinion...