http://blog.wethmangroup.com/2008/10/17/5000-credit-for-dc-first-time-home-buyers/ Thoughts, Opinions, and Rants and Raves about the DC Area Real Estate Market Thu, 20 Jan 2011 14:24:48 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://blog.wethmangroup.com/2008/10/17/5000-credit-for-dc-first-time-home-buyers/comment-page-1/#comment-73 Katie Wethman Sun, 11 Jan 2009 03:59:00 +0000 http://blog.wethmangroup.com/?p=123#comment-73 Anonymous, that's a good point. Of course you should check with a tax professional but I imagine that if someone is in fact in a position where they owe less than $5000 in federal taxes then you would have to run the numbers and decide whether, in your example, you'd rather have $500 free and clear, or $7500 that you would have to repay over time. (But as an aside, I'm not sure there are many home buyers who would only owe $500 total federal income tax.) Anonymous, that’s a good point. Of course you should check with a tax professional but I imagine that if someone is in fact in a position where they owe less than $5000 in federal taxes then you would have to run the numbers and decide whether, in your example, you’d rather have $500 free and clear, or $7500 that you would have to repay over time. (But as an aside, I’m not sure there are many home buyers who would only owe $500 total federal income tax.)

]]> http://blog.wethmangroup.com/2008/10/17/5000-credit-for-dc-first-time-home-buyers/comment-page-1/#comment-72 Anonymous Sun, 11 Jan 2009 03:49:00 +0000 http://blog.wethmangroup.com/?p=123#comment-72 I understand that the federal credit is a loan whereas the DC credit does not have to be paid back, so initially I assumed any DC buyer should go with the DC credit. But then I read that the DC credit is not "refundable," whereas the fed one is. In other words, for the DC credit, if you owe income taxes of less than $5000, it's not like you will receive a check for the difference. However, in the case of the federal credit, you would get the check in the mail: If you owed $500 taxes, under the federal credit you'd get a check for $7000. This could be a factor if what you need most is cash in hand right now, right? For some, maybe the federal credit is more desirable... I understand that the federal credit is a loan whereas the DC credit does not have to be paid back, so initially I assumed any DC buyer should go with the DC credit. But then I read that the DC credit is not “refundable,” whereas the fed one is. In other words, for the DC credit, if you owe income taxes of less than $5000, it’s not like you will receive a check for the difference. However, in the case of the federal credit, you would get the check in the mail: If you owed $500 taxes, under the federal credit you’d get a check for $7000. This could be a factor if what you need most is cash in hand right now, right? For some, maybe the federal credit is more desirable…

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