The OTHER Kind of Tax Credit

Posted on Dec 16, 2009 by Cari McGee in Buyers

You’ve probably heard that they extended the first-time homebuyer’s tax credit.  Now first-timers have until 4/30/2010 to put a house in escrow.

What you may not know is that current homeowners buying a new place now ALSO have a tax credit due to them if they meet certain criteria:

• They must have used the home they’re selling as their principal residence for 5 of the last 8 years.
• They must go “under contract” (go into escrow) before 4/30/2010 and they must close on the purchase by 7/1/2010.
• They can’t buy a house at a price higher than $800,000.

If you can say yes to all of the above, and you’re married filing jointly, you’ll be eligible for a $6,500 tax credit!  Wow!

Of course, there are other questions that come up, too.  What if I’m a first-time homebuyer but my spouse isn’t?  What if we’re living together and we WILL be married AFTER we close on the house?  What if we are repeat home buyers but we’re filing separately and getting married plus we had a baby during a Leap Year?  OK, maybe the last one doesn’t come up too often!  My point is, this is great news and for more detailed info as to how it pertains to you and your financial situation, please call your accountant.

And drive carefully.  It’s crazy icy out there today!