The New $6,500 Tax Credit for “Move Up” Buyers – Do you qualify?

tax-credit

Here’s something in the expanded program that hasn’t gotten much attention:

The new $6,500 federal tax credit for so-called “move up” buyers took effect immediately upon enactment.

That means that potentially hundreds of thousands of Americans who fit the key ownership and income criteria for the new credit are eligible for it … right now.

What are the qualifications?

Number One: You have to have owned and used your current home as your principal residence for five consecutive years out of the past eight;

Number Two: Your adjusted household annual income cannot exceed $125,000 if you file taxes as a single, or $225,000 if you are married filing jointly.

Number Three: You’ve got to sign a contract to purchase a replacement residence before next April 30, and go to closing on it by June 30, 2010.

That’s potentially huge for all sorts of people who never thought of themselves as qualifying for a tax credit under any circumstances, because they’ve owned a home for years.

*Note: Although the $6,500 feature has been labeled the “move up” credit, there is nothing in the law forcing anybody to buy a bigger or costlier house. You can downsize or upsize and still get the credit.

Source: Washington Report – Kenneth Harney


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5 responses to this post.

  1. I believe this should help the housing market temporariliy while the economy improves. We need people back to work in jobs where they can feed their families and pay for life’s necessities. What do others think about this new tax credit?

    Reply

  2. Posted by paul on November 28, 2009 at 4:04 pm

    we have lived in our home sinceoct 78. we bought a new home and closed on july 11, do we qualify? 2009

    Reply

  3. we have lived in our home since oct,1978. we bought a allyear round home on a lake and plan on living there fulltime next summer. we consider this a moveup. we closed on july 20th 2009. do we qualify for the 6500?
    thankyou paul and carolyn agan

    Reply

    • we are still waiting for your answer.
      paul and carolyn

      Reply

      • Hi Paul and Carolyn,

        Thank you for your question and patience.

        Based on the information you shared and the list of qualifications on the blog, you may qualify if your 2nd home is your primary residence.

        However, if you call your lender and discuss your personal situation and conditions, your lender can give you a more complete assessment.

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