8000 first time homebuyer tax credit

[buildmybudget]

Sure there are plenty of people who could wind up in a bad spot if they don't manage their finances well or quite simply, have bad luck and lose their job. No one has mentioned yet how this credit has helped plenty of financially responsible individuals and families purchase their first home. For some people, it is a blessing and they welcome the opportunity despite being required to stay for 3 years. Perhaps even more significant is that these people are the ones helping prop up the economy and create jobs by purchasing household goods, etc. Just something to consider...

[maat55]

Sure there are plenty of people who could wind up in a bad spot if they don't manage their finances well or quite simply, have bad luck and lose their job. No one has mentioned yet how this credit has helped plenty of financially responsible individuals and families purchase their first home. For some people, it is a blessing and they welcome the opportunity despite being required to stay for 3 years. Perhaps even more significant is that these people are the ones helping prop up the economy and create jobs by purchasing household goods, etc. Just something to consider...

There are two side affects of this credit. One, you are giving someone elses money away without there permission, not to mention favoring some over others.

Two, you are taking on an liablility that can come back to bite you later.

It is a very bad precedence in a free society.

[terces]

Totally agree with maat. Coworker's daughter had some hookup and got the $8000. No intention on buying a house or wouldn't even qualify for a mortgage. Figures she got a free loan from the government for the next few years.

[wnlbutterfly]

Toobigformybritches....yes a tax credit but they actually do get the $8k right away, (not 2010 when they file their taxes). The govt decided it would be best if homeowners could amend last year taxes and put this credit on there and get the money NOW instead of next tax season.

So people literally are getting a check from Uncle Sam that is $8k, and unlike the previous year (it was $7,500 and they have to pay it back), this doesn't have to be paid back, guess giving homeowners an interest free loan wasn't enough. And yes, if you move before the 3 yrs, you have to pay it back.

Hopefully those repairs and new appliances will make it easier for you to get enough out of the sale of your home to pay back the $8k.

[ktmarvels]

My mother in law is a tax preparer and she said that typically bills like this get additions which allow for people to get out of repaying if they have to move because of a job. However, that provision isn't there yet, and probably won't be there for a while. She advised us to stash the money in case we have to move and pay it back (DH is in the military so we'll probably be moving in the next 3 years).