I heard there is also a tax credit for second time home buyers, is that true?

Asked by Roseann, East Brunswick, NJ Tue Feb 16, 2010

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13
John Sacktig, Agent, New Jersey, NJ
Tue Feb 16, 2010
BEST ANSWER
A little bit more...

1. A qualified current homeowner who wishes to move to a different home (a “move-up” buyer) must have owned and resided in their residence for five consecutive years out of the last eight. It’s not enough that you have been homeowners for five years—you must have been in the same home for five consecutive years.

2. Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. According to Goldman Sachs, these income limits make approximately 70% of current homeowners eligible for the credit.

3. The maximum credit amount for current homeowners is $6,500. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less.

4. Even though the term “move-up” is used to describe these buyers, the credit is not predicated on buying a home of higher value than your current home.

5. Move-up buyers are not required to sell their current home to qualify for the credit. They must reside in the new home for at least three years, but they can keep their existing home and either leave it vacated or use it for rental purposes.

These are just a few of the key facts surrounding the move-up buyer tax credit.

Ah, the disclaimer:
The information on this post does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question.
3 votes
Debra (Debbi…, Agent, Livingston, NJ
Tue Feb 16, 2010
Thorough response John (and others)..........good job! I like the disclaimer, too John - might borrow it for future use! :)

By the way Roseann - the repeat buyer credit even applies to third or fourth time buyers, as long as they meet the requirements listed below!

Good luck!
2 votes
John Sacktig, Agent, New Jersey, NJ
Tue Feb 16, 2010
Hi Roseann -

Yes, a $6500 credit as long as you own your current home for 5 years when you sell... there are variations on the criteria.

See my Blog and Link:

http://www.trulia.com/blog/john_sacktig/2009/09/less_then_3_…


Feel free to call or email with any further questions!

John Sacktig
Broker / Manager
Orange Key Realty
Office: 732-863-6969
Cell: 732-213-1409

JSacktig@orangekeyrealty.com
1 vote
Daryl & Brig…, Agent, Garden City, KS
Tue Feb 16, 2010
The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance


To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
The tax credit applies only to homes priced at $800,000 or less.
The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
1 vote
Alan Aly, Agent, East Brunswick, NJ
Tue Feb 16, 2010
Hello my East Brunswick neighbor Roseann,
On November 5, 2009, Congress passed a bill that included an extension and expansion of the home buyer tax credit. The bill would extend the present $8,000 tax credit for first-time home buyers through April 30, 2010. Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.
I hope that helps.
Web Reference:  http://www.AlanAly.com
1 vote
Jerry Barker, Agent, Atlantic City, NJ
Wed Feb 17, 2010
Yes, for full details visit http://www.federalhousingtaxcredit.com
0 votes
Diane Glander, Agent, Spring Lake, NJ
Tue Feb 16, 2010
Yes, you can get all the details at my website below. Just follow the link for first-time homebuyers tax credit info.
Web Reference:  http://www.dianeglander.com
0 votes
Roseann, Both Buyer And Seller, East Brunswick, NJ
Tue Feb 16, 2010
Thank you everyone, unfortunately I only resided in my townhouse for four consecutive years!!!! I bought a split level in east brunswick, which I am currently residing in Too bad I missed out by a year.
0 votes
Randi Tirado…, Agent, North Brunswick, NJ
Tue Feb 16, 2010
Yes there is, presuming that you've lived in your principal residence for 5 of the last 8 years, as well as some other details. One of my website contributors is a CPA who wrote an article with all the details (Click the link below for the article.)

http://jerseycoop.com/2009/11/details-on-the-new-tax-credit-…

In the event that you do not qualify, there are some other programs which you may be interested in. Feel free to contact me directly for more details.

Cooper

Cooper Ford
Realtor Associate
Gloria Zastko Realtors
Office: 732-297-0600 x31
Cell: 609-865-5877
0 votes
Gita Bantwal, Agent, Jamison, PA
Tue Feb 16, 2010
Yes there is a tax credit for second time home buyers
There are certain criteria to qualify.
Go to http://www.irs.gov for details.
Web Reference:  http://www.gitabantwal.com
0 votes
Richard Leci…, , Tucson, AZ
Tue Feb 16, 2010
Yes there is but time is running out. You can get all the details on the link below.

http://rlecinski.longrealty.com/Content/Content.aspx?Categor…
0 votes
Dianne Hicks, Agent, Rancho Bernardo, CA
Tue Feb 16, 2010
Roseann
Yes, I wrote a blog that has all the info for you. Here is the link http://www.trulia.com/blog/dianne_hicks/2009/12/6500_dollar_…

Hope that was clear for you
0 votes
Daryl & Brig…, Agent, Garden City, KS
Tue Feb 16, 2010
There is a tax credit for up to $6,500 if you are moving up in the market. Must have lived in existing home for 5 years. Visit our website for full details and qualifications.
0 votes
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