WRAL.com: Raleigh, Durham, Fayetteville

Log in to WRAL.com with one click using your favorite social network:

Register with WRAL.com using your favorite social network:

8:37 a.m. • 6-20-13

68°F

Weather Forecast for Raleigh

Today: Partly Cloudy.
- Hi: 85° F
Fri: Partly Cloudy.
- Hi: 85° F
Sat: Thunderstorm.
- Hi: 85° F

Other Locations

7 Day Forecast

Posted: February 3, 2010
Updated: February 4, 2010

First-time homebuyers might have to repay tax credit

Site Search

Raleigh, N.C. — Have you taken advantage of the federal first-time homebuyers tax credit? If so, you might have to pay it back.

The Internal Revenue Service defines a first-time homebuyer as someone who has not owned a home in the three years prior to purchase.

The tax credit, for people purchasing a home from Nov. 7, 2009, to April 30, 2010, is generally equal to 10 percent of the home's purchase, up to a maximum of $8,000, and is available to single taxpayers making less than $125,000 or married couples with a combined income of less than $225,000.

If you meet the federal requirements and keep the residence as your primary home for three years, there's no need to pay back the credit.

But if you received a housing credit before Jan. 1, 2009, you have to pay it back.

That credit – up to $7,500 for qualified homebuyers – is more like a 0 percent loan and must be paid back over the course of 15 years in $500 installments. That begins with the 2010 tax return.

Get News Alerts to your Email & Cell Phone

36 Comments

WRAL.com welcomes your comments on this story. All comments are moderated prior to publication based on our posting guidelines. Please review them prior to posting and if your message is not approved.

VIEW ALL 36 COMMENTS

This story is closed for comments.

Latest Comments

Once again, Obama and his lackey's pull one over on the taxpayers.

DontLikeTheSocialistObama
February 10, 2010 4:51 p.m.

josephlawrence43...love your response!!!

It is typical of all the ignorance on these postings. You want to blame the "democommies", as you put it, when it was a republican government that started the tax credit in the first place.

You should do some reading before you say something stupid!

magicbus
February 8, 2010 3:06 p.m.

I agree with everyone here. I did my research, like many other people over the last two years, and did not take the credit that was available to me for TY08. Why would anyone want another $7,500 or $8,000 loan hanging over their heads for 15 years?

Right_Is_Right
February 5, 2010 3:11 p.m.

I am very disappointed that WRAL would print such a misleading headline. I have often accused news media of being in the fear mongering business, and this is another example of such. This is all about getting hits on a web site. The story is very factual, the headline is misleading. But honestly, what is the purpose of this story? This is not news. This is not something new. This is a tax code. Where is the report from WRAL on the new taxable income ranges? Where is the story about the $600 dollar family tax credit from three years ago? These are just as much news as this story is, which is not very much at all.

peplquitwhinin
February 4, 2010 7:52 p.m.

This was public knowledge and any credible real estate agent hired to represent you would know this. Plus, it was clearly reported in many public news channels at the time the initial incentive was allowed. This sensationalized report implies someone did something wrong or underhanded - and based on the responses I've seen, it appears some people fell for it. C'mon WRAL - provide quality, true and correct reporting.