The Sun Sentinel answers your questions about the downturn every Wednesday. To submit your questions, use the form at the right.

How has the first-time homebuyers tax credit changed with the economic stimulus law?

Under the old law, first-time buyers could get a tax credit up to $7,500 for a home purchased between April 9, 2008, and July 1, 2009. You’d take the credit on your 2008 return. You must pay this credit amount back over 15 years, starting two years after the purchase.

Under the stimulus law, the old law stands. But now, the credit limit is raised to $8,000 and it applies to homes purchased between Jan. 1, 2009, and Nov. 30, 2009. This would not have to be repaid unless you sell the home within three years of the purchase.

The new rules don’t apply to purchases in 2008. So last year’s buyers will have to repay
The confusing part: If you buy in the first half of 2009 but were planning to take the credit on your 2008 return under the old law, you would not get the extra $500 credit.

And although some think they should have been informed about this before they set a date to buy a house last year, the law wasn’t in place until the end of 2008. So all who bought houses April 8, 2008 or earlier are simply not eligible for this credit.