Can you believe it has already been three years since so many buyerswere out trying to find a home to take advantage of the First TimeBuyer Tax Credit? I couldn't either until I started getting calls from pastbuyers trying to remember the exact rule on how long they have to own theirhome before they can sell and not have to repay a portion of the $8,000 theygot as a tax credit.
According to the IRS.gov website, if you received the $8,000first time buyer tax credit, you must occupy your home for three years in orderto not have to pay back the credit. If you do sell before those three years areup, you must then repay a portion of the credit you received. And of coursethere are other loopholes and exceptions so before making any decision it iscrucial to consult a licensed tax professional.
But with the market as hot as it is right now, buyersfrustrated in not being able to find the right home and lots of listings seeingmultiple offers, maybe it is time for more of these first time buyers to considerselling once their three years has passed and take advantage of a market thatis on the brink of taking off. Interest rates are even lower than when theybought which we didn't think possible at the time and most could probably sell fora profit, imagine that! For more information on the rules and regulations ofthe credit, click here.
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