Home Buyers Tax Credit, Part II

Last Summer I blogged about a new $7,500 tax credit available for first-time home buyers. One of the provisions to the tax credit, however, was that it would have to be repaid over a 15 year period. This prompted most tax experts to call it more of a loan, and I agree.

Flash forward to today. The $819 billion economic stimulus package that is being debated in Washington, DC, right now includes legislation that would remove the "repayment" provision to the $7,500 tax credit.

The change would apply to any home purchased between Jan. 1 and the end of August, so people who bought (yours truly included) when the tax credit was first enacted last summer would still have to pay back the tax credit.

Why not include first-time home buyers who bought the last half of 2008, you might ask? Well, the removal of the "repayment" provision is being pushed by the National Association of Realtors to drum up future sales & commissions for their Realtor membership. Do you think that NAR really cares about people who already bought?

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