Fthbc

[spencer]

Client received credit, $7500, with 2008 return. Not required to start payback until 2010 return. Question..........Can client start payback with 2009 return if he wishes?

[BP.]

The present version of the 5405 only allows for repayment of the 2008 credit for Dispositions or Change in Use of the home. If they'd like to start the repayment early, how about with an estimated tax payment for 2010?

[RitaB]

What is wrong with people?

Good suggestion, BP.

And, why do people want to pay a zero loan off early, anyway? Don't answer that. I know. They won't have the money later, right?

[Gretel]

Good suggestion, BP.

And, why do people want to pay a zero loan off early, anyway? Don't answer that. I know. They won't have the money later, right?

That is probably only one of several possibilities. Another one is that it just feels good to have as little debt as possible.

[spencer]

aah, thanks!

The present version of the 5405 only allows for repayment of the 2008 credit for Dispositions or Change in Use of the home. If they'd like to start the repayment early, how about with an estimated tax payment for 2010?

that's a really good suggestion....Ed

[Burke]

That is probably only one of several possibilities. Another one is that it just feels good to have as little debt as possible.

I believe they have the option to pay it off early as well. Is that not correct? So they could accelerate the payments? Or pay it all off in one year?

[David1980]

That is probably only one of several possibilities. Another one is that it just feels good to have as little debt as possible.

Well, unless they have absolutely no other debt (which seems very unlikely if they just bought a house within the last couple years) the fastest way out of debt is to pay off the higher interest rate balances first.

My guess is they don't have a 0% interest mortgage. Paying the $500 towards their mortgage would get them out of debt faster.