Wednesday, July 30, 2008

Tax "Credit" In Housing Bill Is Really Just A Loan

More details are pouring out of the 600 page Housing "Rescue" Bill. The latest: The $ 7,500 credit for new homeowners is not really a credit. It's a loan. Those who qualify to receive this "credit" will receive 10% of the purchase price of their home -- up to $7,500, in the first year. Then they will repay the loan over a 15-year period, starting in the second year after the taxable year in which the house is purchased.

Those who haven't owned a principal residence for three years before buying the new home qualify for the "credit".. If you've owned a vacation home or timeshare, you will still qualify.

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