"Old" Homebuyer Credit

[Black Bart]

Have they done away with the repayment requirement for the $7,500 credit?

[KBTS]

No if you take the "old" credit, there is still the repayment required.

[Black Bart]

Okay, thanks.

Gosh, this presents a difficult decision to be made by those buying homes after 1-1-09, doesn't it?

You gotta ask yourself: "Should I take $7,500 and pay it back for 15 years or should I take $8,000 and not pay it back? Hmm...let me think this one over..."

[jimmcg]

Gosh, this presents a difficult decision to be made by those buying homes after 1-1-09, doesn't it?

You gotta ask yourself: "Should I take $7,500 and pay it back for 15 years or should I take $8,000 and not pay it back? Hmm...let me think this one over..."

Don't believe it is optional, if you purchased before 1-01-09 the $7500 "loan" and applicable rules apply; if you purchased after 12-31-08 the $8000 credit and applicable new rules apply.

[ChEAr$]

That too

Don't believe it is optional, if you purchased before 1-01-09 the $7500 "loan" and applicable rules apply; if you purchased after 12-31-08 the $8000 credit and applicable new rules apply.

is my understanding of the new legislation. What IF someone who bought a house in January elected the old rules? IRS might look at the return and question the guy's sanity and promptly audit him. (grin)

However I must admit, I'm not sure "sanity" is in the IRS audit rules.

[jimmcg]

is my understanding of the new legislation. What IF someone who bought a house in January elected the old rules? IRS might look at the return and question the guy's sanity and promptly audit him. (grin)

However I must admit, I'm not sure "sanity" is in the IRS audit rules.

If we start applying logic or sanity in our profession we would be in a heap of trouble.

[Black Bart]

Can you

Don't believe it is optional, if you purchased before 1-01-09 the $7500 "loan" and applicable rules apply; if you purchased after 12-31-08 the $8000 credit and applicable new rules apply.

imagine the number of domestic disputes this little gem has caused? Conversations probably went like: "You're ALWAYS putting things off -- let's hurry and close this deal before the year ends and get that $7,500 interest-free loan. You never know when they'll change the law and maybe not let people buying in January get in on this."

[JohnH]

Great point.
What about the hapless real estate agent who urged his clients to "close the deal" before Dec 31 using that same logic. Anybody smell a lawsuit here?

[Burke]

Don't believe it is optional, if you purchased before 1-01-09 the $7500 "loan" and applicable rules apply; if you purchased after 12-31-08 the $8000 credit and applicable new rules apply.

This is correct. Even if you elect to take the new credit on 2008 return. Still use new rules. So I agree, there is no "option." I expect they will waive the payback for the $7,500 credit due to this, however. Next tax bill will probably make it retroactive due to hue and cry. We always thought they would do it anyway.