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I repaid 500 on 2010 Tax return for the 2008 First-Time Homebuyers credit, but do I have to pay 500 on each return or just make sure it is paid of within 15 years. For example, can I chose to pay 0 this year (2011) and pay 1000 next year?

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As long as you live in the house (its your primary residence), you must pay $500 a year, no skipping.

Once you sell, or rent out - you must repay in full the remaining amount.

IRS pub on that.

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  • Thanks, I also called the IRS and confirmed this as well. – Xaisoft Feb 7 '12 at 19:05
  • Wow.. did not know it was considered an interest-free loan! – CheckRaise Feb 7 '12 at 21:06
  • @CheckRaise only for purchases in 2008. If you bought your home during 2009 and 2010 and got the credit - you do not need to pay it back. – littleadv Feb 7 '12 at 21:08
  • Ah, a year makes all the difference! Whew! – CheckRaise Feb 7 '12 at 21:21
  • I don't understand how they can call it a credit and make you pay it back :( – Xaisoft Feb 8 '12 at 14:23

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