Buyers Be Careful

If you participate in the $7,500.00 tax credit program recently enacted which ends in July next year, remember that you're obligated to repay the total amount borrowed once you sell your home up to any gain in the price.

The formula is based on a 15 year payback so if you "borrowed" the full amount, you should "put aside" $500 each year in a separate account then you'll have some money for the payment due when you file your tax return in the year in which your house was sold (balance paid from proceeds at sale).

This may prevent you from running afoul of the IRS.