Homebuyer tax credit changed between 2008 and 2009

Q. Back in 2008, we received a first-time homebuyer credit of $7,500 on our income taxes. My husband says we need to repay that amount. I say it was a gift from the government to stimulate our buying.

A. Unlike the 2009 and 2010 homebuyer tax credits, the one you used for your 2008 purchase does have to be repaid, over a 15-year period starting with your 2010 tax return (use IRS form 5405). That was pretty much just an interest-free loan from Uncle Sam to help with your purchase costs.

Tax credits claimed for 2009 and 2010 purchases need not be repaid, unless the house is resold within 36 months.

Q. In a recent column, someone asked if they could use a “quick-claim” deed, and you answered that “a quick-claim deed is often used in divorce situations.” I do believe it's called a quitclaim deed.

A. Thanks for taking the time and trouble to write. You and a lot of others caught that.

Here's what happened. In my answer, I used the proper term “quitclaim.” I left “quick” in the original question, figuring my response would act as a subtle correction. Too subtle, I guess. Somewhere along the line, an editor tidied the item up so that my answer would match the question.

As we both know, when you sign a bare-bones quitclaim deed, you simply quit — give up — any claim you may or may not have in the property.

Q. I live in a four-bedroom home. It has only one full bath. I would love to replace the tub (which no one except my youngest grandchild ever uses) with a large, tiled walk-in shower with a seat. I am a senior citizen and would enjoy not having to step into and out of a deep tub when I shower.

Many people have advised me this would negatively impact the value of my home. I'm not planning to sell any time soon, but at my age, perhaps I should be considering this. Would having no bathtub in my home substantially affect its value?

A. Another reader asked the same question recently, and I answered that it would be hard to sell a house with no tub. Here's one response to that:

“As a Realtor and certified appraiser with 40 years experience, I disagree with your statement, ‘It'd be hard to sell a house with no bathtub at all.' I think it depends.

“Today, I think you will find that most people shower and do not use a tub, unless they have small children or seniors. Bathtubs are often used as clothes hampers, love seats and are just a useless extra. A large stall shower with dual faucets and a bench would be more appealing than a cramped shower over the tub, which requires being step over to enter.

“I have a home at the beach, where showers are much more popular than tubs. We love our huge walk-in shower in the master bedroom. We got rid of the tub when we realized we had not used it in years. I would not mark down an appraisal where a quality stall shower replaced a bathtub. Maybe in Rochester (N.Y.) you need a tub to soak away the freezing winter cold, which we never see here in Laguna Beach (Calif.)”

Perhaps, we should throw this open to the reading public. OK, gang, would you consider buying a house with a great shower but no tub? E-mail yes or no to edithlank@aol.com.

Q. I obtained a mortgage loan in June 1993 at 7.5 percent. I paid the loan off in 13 years, along with the interest. Should the mortgage company have sent me a refund for interest paid on the 27 years? If this is unclear, please send your phone number so I could call you.

A. Your note is quite clear. I just hope the explanation is clear, too. First of all, congratulations on clearing the debt early. It really did save you money that you would otherwise have owed in interest over the next 17 (not 27) years.

But when you paid off the remaining debt, that's all you paid — what was left of the loan. If you owed any interest at that point, it would have been just for the month before.

Trust me, you never paid interest into the future. It doesn't work that way. A charge like rent is typically paid in advance. On the other hand, monthly mortgage interest is usually paid “in arrears” — after you've had the use of the borrowed money for the preceding month.

Ÿ Edith Lank will respond to questions sent to her at 240 Hemingway Drive, Rochester, N.Y. 14620 (please include a stamped return envelope), or readers may e-mail her at ehlank@aol.com.

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