Aug 05, 2008

Tax Credit for First-Time Homebuyers? Not Quite

Read the news lately? Before you get too excited about the $7,500 tax credit for first-time home buyers included in the recent housing bailout legislation, take note of one very important thing: You have to pay it back. In fact, you don't even get to wait until your house is sold to pay it back -- the feds will claim it in installment payments in subsequent years of your tax payments.

That's no typical tax credit -- it's more like an interest-free loan. For details, see Sandra Block's excellent description in USA TODAY.

Ilona Bray