Federal Tax Credits $8000 & 6500 (sales, real estate, 2010)

[Deines-Paulson]

Everyone the Fed has extended the tax credit for first time buyers til the end of April 2010. In addition they are offering existing homeowners a $6500 credit. In the know real estate agent here!

[Chris2000]

What are the rules toward existing homeowners?
My Wife and I are looking to get into a home, but we purchased one in TX just over a year ago and don't want to take a huge hit on it. Would this $6500 apply to us?
Chris2000

[OneKC]

Grrr...we just purchased a home!

[Deines-Paulson]

I'm afraid that homeowners that have to have lived in the primary residence for 5 years in order for the tax credit of $6500 to apply. If you have questions feel free to ask.

[sparksharp]

Originally Posted by Deines-Paulson

I'm afraid that homeowners that have to have lived in the primary residence for 5 years in order for the tax credit of $6500 to apply. If you have questions feel free to ask.

Hey...I've been in my current home for 20 years! Does that mean I qualify?

How does this all work anyway?

[tbanurse]

Originally Posted by Deines-Paulson

I'm afraid that homeowners that have to have lived in the primary residence for 5 years in order for the tax credit of $6500 to apply. If you have questions feel free to ask.

We owned our previous home for 6 years and closed on our new house August 19, 2009. Will this tax credit apply to us since we purchased this year, if we closed prior to the passing of this bill? I can't seem to find any info on this. If you could provide supporting references, that would be greatly appreciated!

[Claire2900]

what timeframe does the $6500 tax credit apply to? We bought a new home in April 2009 and did live in our previous residence 5+ years

[Deines-Paulson]

To receive the 8000 first time buyer or the 6500 tax credit you must first have a transaction that closes during this time frame for the 6500 credit to apply. You have to have owned your previous residence for 5 years and are purchasing during the time the legislation has passed for the individual credits. Consult your local tax professional to get explicit answers that may be of benefit to you.

[Samantha S]

Originally Posted by Deines-Paulson

To receive the 8000 first time buyer or the 6500 tax credit you must first have a transaction that closes during this time frame for the 6500 credit to apply.

That doesn't answer her question though.

She's asking what the beginning point is for the timeframe. I'm assuming it's January 1, 2009 since this is an extension and expansion of the original tax credit that went into effect in January. So if you sold and bought your primary residence in 09 and owned for 5 years prior to that, you might qualify although there may be other restrictions. I also saw something that said the $6,500 credit would likely go into effect 12/1/09 which might mean purchases prior to that date would not be eligible. This would make more sense if it's a way to drum up new sales as opposed to rewarding people who bought anyway in 09 with no prior incentives. But then again, I could be flat out wrong!

It's important to remember that a lot can end up on the cutting room floor before a bill becomes a law and this one still has to pass the house yet. Bottom Line: Beware of "in the know" real estate agents.

[Deines-Paulson]

I'm afraid this law passed the house and is law now. The 6500 dollar tax credit takes affect on new purchases following the passage of this law. There is not a grandfather clause for this passage. I should have been more explicit.