The Senate version of the stimulus package had a $15,000 home buyer tax credit available to any home buyer that bought a home before the end of the year.
In Senate and House negotiations, that credit was changed considerably from the $15,000 for any home buyer, back to applying only to first time home buyers. The amount was dropped too.
Just for the record, the gov’t classifies a first time home buyer as anyone who has not owned a home in the last 3 years.
The gist of the tax credit is that first time home buyers can now get a tax credit of $8,000. The new kicker? If they live in the house for at least 3 years, those home buyers who took the credit will NOT have to pay it back!
I’m still trying to find out, but from what I’ve heard so far, is that this will NOT be retroactive. Meaning, if you already closed on a house and took the $7,500 tax credit plan for first time home buyers, then you’ll will still have to pay it back to the I.R.S. (interest free). You will NOT automatically be converted to the new deal.
Like I said that’s what I’ve heard so far, but I’m trying to find out for sure.
Of course, the new tax credit deal won’t take effect until a stimulus package is passed and signed by the President.
