Move Up / Repeat Home Buyer Credit until June 30th, 2010

Move up / Repeat Home Buyer Tax Credit
Another exciting new tax law for home owners! The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010). THIS MEANS that even if you don't qualify for the First Time Home Buyer Credit because you have been a homeowner for the past three years, you still have a chance to take advantage of a large tax credit if you want to buy a new home in the next six months. Please see below for questions and answers regarding this new tax credit available:

Q:Who is eligible to claim the $6,500 tax credit?
A:Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.

Q:What is the definition of a move-up or repeat home buyer?
A:The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.

Q:How is the amount of the tax credit determined?
A:The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.

Q:Are there any income limits for claiming the tax credit?
A:Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.