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Example. Imagine the rule simply said you had to pay back the entire credit, irrespective of gain. Suppose I bought a house for $ , on Monday. I was stretching, but I figured I could pay $ , becuae it really would only cost me $92, after the credit. I had outbid a potential buyer who had bid $99. On Tuesday, congress decides that the homebuyer credit program is silly and repeals the law, effective Tuesday. On Wednesday, I get a job transfer out of state. On Thursday, the outbid buyer says "no problem, I buy the house from you. But now, since there is no longer an $ credit, my cost to buy has increased by $ , I can only pay you $91." My cost was $92, ($ , minus $ credit). I sell for $91. I just lost $. It would be unfair for the government to make me pay back the $ credit (and thus cause me to lose $ ) because, in the facts of this example, I did not receive any economic benefit from the credit. If I had received an economic benefit from the credit, the house would have sold for more than $92, in which case the government would have been owed the benefit I had received (., the gain from the sale). Of course, in real life there is a lot of friction in a home sale. (The largest being real estate commissions.) So in real life the rule turns out to be taxpayer favorable in that it causes the government to bear the friction to the extent of the credit. So you could say that the repayment rule is an unfair partnership with the government in the taxpayer's favor (. I can sell in the first year's and, if the credit adjusted pre-friction economic value of the property is unchanged, the government pay the friction). To fix this "unfairness" would require a far more complicated rule. Adult want sex Fort lawn SouthCarolina 29714
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