I just bought my first house back in May and I recently found out that I will be eligible for the first-time home buyer tax credit when I file my taxes this year. According to H & R Block, I will be eligbile for the maximum amount, which is $7500. I understand that this is pretty much just an interest-free loan from the government that I will have to start paying back in 2010 out of my tax returns for the next 15 years. I also know that whatever I owe will become due all at once if I ever sell my home, which I really don’t have any plans on doing. I love my home and can’t ever imagine selling it. However, I know that if I ever change my mind, I will have to pay back whatever I owe all at once. If I took this tax credit, I would use a lot of it to put equity into my home. I am just looking for suggestions as to whether or not this tax credit would be a wise thing to do. There are so many improvements that I want to make to my house and this money would help signifcantly. Any advice on this subject would be greatly appreciated!
I should have added that one of the things that I would be using the money for is to replace some older windows that really need to be replaced very soon as well as replace the really old sliding doors going out to my deck with French doors for better insulation.
Thanks for all the advice! I am almost 100% certain that I am going to take advantage of this credit. It would help me out a lot. I already opened up a separate bank account to keep the money in so that I can keep better track of it.
Tags: Buyer, Credit, FirstTime, Home, Home Improvement FAQ, Should, This, Year, take by admin
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