Home Buyer Tax Credit Repayment Begins for 2008 Buyers

Home buyers who purchase their home in 2008 and benefitted from the $7,500.00 tax credit are required to start repaying in 15 annual installments beginning with their 2010 tax returns.

This may be confusing for many people since the tax credit began in 2008 and was different under different circumstances in 2009 and 2010.

If you purchased your home in 2008 and received the full benefit of the $7,500.00 tax credit will start to repay the credit in the form of $500.00 from the 2010 tax return through 2025 or until the home is sold.

If you purchased in 2009 or 2010 then there is not a repayment requirement unless you change homes and it is not your principal residence anymore.

Military service members can qualify for the tax credit until April 30, 2011.  If you are in the military, there is still time to purchase new San Diego real estate.  Email us at [email protected] and we’ll tell you how.