$6,500 Repeat Buyer Tax Credit

Here is more information on the repeat buyer tax credit. Many people have asked me questions about this credit so here is more clarification:
Some rules for the tax credit:

• You need to have owned the home for five consecutive years (out of the past eight years.) This home must have been your primary residence.
• You need to purchase a different home as your primary residence. This home’s purchase cannot exceed $800,000. If it does, you are not eligible for any portion of the credit.
• You do not need to sell your former primary residence. You may lease it, sell it or give it away.
• Your income does not exceed $125,000 filing individually or $225,000, married filing jointly. Even if you do make more, you may be eligible or a smaller credit.
• You must purchase the home sometime from November 7, 2009 to April 30, 2010. You must have a signed contract by April 30, 2010. You get an additional 60 days to close financing-or until July 1, 2010.
• You must be 18 years or older.
• If you are an active service member and work outside of the United States there are special considerations for you- check WaHomeowners.com for details.

Also, some reminders on what you get:

• A tax credit that equals 10% of the value of the home – up to $8,000.
• If you do not owe $8,000 in taxes, you receive the balance in cash-a stimulus check mailed directly to you.
• If you sell your house within three years, you may need to repay a portion of the tax credit on a prorated scale.

Of course check with your tax advisor to discuss all the benefits of home ownership and the deductions you will qualify for.