CEDAR RAPIDS ROOTs HOME BUYERS BEWARE OF TAX BITE!
Greetings, C. R. Gazette Editors and alló
This is an advisory notice to all Iowalive readers. The City of Cedar Rapids, in conjunction with the Iowa Economic Development Authority (IEDA), is offering ROOTs, the third and fourth round of the Single Family New Construction Program, to replace housing units lost as a result of the 2008 flood. The program offers down payment assistance up to 25% of the purchase price of an approved unit to income-qualified applicants.
A reader asked a sincere question concerning the ROOTs (Rebuilding Ownership Opportunities Together) Housing Program in Cedar Rapids. The question was if the $37,500 down payment assistance--which is in the form of a forgivable loan, is taxable as income.
The answer appears to be YES it is.
If you purchased a Roots home, we strongly urge that you have your tax advisor review your tax return; as you may want to amend the filing of your income taxes.
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