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UB Home Team, Real Estate Pro in Oklahoma City, OK

Existing Owner has owned 2 homes as primary in the last 5 of 8 years...Does this still qualify for $6500 if we sell the second home and buy a third???

Asked by UB Home Team, Oklahoma City, OK Mon Nov 9, 2009

I have called NAR, OAR, IRS, my Broker and my Board and no one has a clear-cut and verifiable answer, as posed by a current homeowner exploring the $6500 tax credit option. If he/she/they has/have owned MORE THAN ONE primary residence, (two homes in this case, due to job transfer), in the last five of eight years, does this family and/or person qualify for the tax credit?

I have found NO VERBAGE stating it CAN NOT be more than one home. NAR's actual vergabe says, "Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight."

"Vacated" seems to tell me that one than one home owned could/would qualify. Otherwise, why "vacate"?

Any help in this matter is appreciated!

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Answers

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Maybe this link with Q & A's will help you and your client: http://tinyurl.com/5mmts9 Of course, they should also consult with their CPA/accountant.

An answer to your question is this: What is the definition of a move-up or repeat home buyer?
The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a home owner who has owned and resided in a 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.
Web Reference: http://tinyurl.com/5mmts9
0 votes Thank Flag Link Mon Nov 9, 2009
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