Tax question regarding $7,500 homebuyer credit?

Hi,

We purchased a house on April 29, 2008, qualified for and claimed the 7,500 credit. Does this credit count as income for 2009? I haven't been able to find any information regarding this on the IRS website.

Please cite source of information. I'm not looking for best guesses, but rather actual information (preferably from the IRS website).

Thanks!

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Answer:
No, not a guess. Think about this: federal refunds and credits are never income. The $7500 is a zero interest loan; you are going to pay it back. My problem with citing a source is that no has ever even recommended this. The IRS topic below discusses the 2008 credit. It does not state it is income. It does say it must be paid back, with certain exceptions.

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Answer:
Given the fact that you purchased the home in 2008 you were eligible for a $7,500 no interest loan from the government. You’ll begin to repay that in 2010 at $500 a year for 15 years. The original $7,500 isn’t taxable income to you in any year. Try this link to verify my “guess”.

http://www.irs.gov/newsroom/article/0,,i…

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Answer:
No, you don't claim it as income. But beginning the following year, you'll pay it back at tax time at $500 a year for 15 years.