Home Selling in 19560>Question Details

Tim, Home Buyer in 19606

Going to sell a house, Can i get the $6500 tax credit?

Asked by Tim, 19606 Mon Nov 30, 2009

Not sure if i quality for the new Home Owner credit. I know i'm under the guidlines for the income requirement but my situation is this. I lived in a CITY property for eight years as my primary residence. But two years ago I moved from that residence to another one in the BURBS. I still own both but the BURBS has been my primary residence for two years. Can I still claim the tax credit if i sell my CITY property?

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Tami Davies-Coleman’s answer
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 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.
0 votes Thank Flag Link Tue Dec 1, 2009
That $6,500 tax credit is only available for homeowners who are BUYING a house in the next few months (deadline is a contract prior to April 30, 2010 and a settlement date prior to May 31, 2010, I believe), who have owned or resided in the same home continuously for five or more years of the past 8 years prior to now selling that home and buying a new one (you could have sold the previous home a year or two ago and just be renting and still be eligible, but you would not be eligible if you had BOUGHT another home during the previous couple of years). Since you basically bought a new house a couple of years ago and moved into it as your primary residence, I suspect that this would disqualify you from obtaining the tax credit if you now bought another primary residence, but since we are real estate agents are not tax specialists, my best advice in this situation is to consult such a tax specialist before making a decision.

Below is the FAQ website for the federal tax credit, in case this helps.....

http://www.federalhousingtaxcredit.com/faq2.php
0 votes Thank Flag Link Mon Nov 30, 2009
Under the tax credit you must be at your primary residence for more than 5 years so I would say you do not qualify.

But if you wanted to read over, here is the government site for the credit http://www.irs.gov/newsroom/article/0,,id=204671,00.html



Sean Dawes
Web Reference: http://www.SeanDawes.com
0 votes Thank Flag Link Mon Nov 30, 2009
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