How did the $8,000 first-time home buyer credit work? Was it given to the real estate or mortgage companies? How is it handled?
Kristopher Amos, attorney with Barber Emerson L.C., said that generally, the first-time homebuyer credit provided taxpayers a maximum tax credit of $8,000 for purchasing a "first" home before Sept. 30, 2010. To qualify, the taxpayer must have entered into a binding contract for such a home prior to April 30, 2010. Amos said the tax credit does not have to be repaid to the IRS unless certain triggering events occur (for example, the taxpayer ceases to use the home as his or her principal residence for a period of three years). Calvin Karlin, another attorney with Barber Emerson, said the credit does not go to the real estate or mortgage companies but they may indirectly benefit from increased activity. For more information contact a tax adviser, accountant or attorney or visit www.irs.gov/newsroom/article/0,,id=206293,00.html.