Q: My wife and I purchased a home on February 27, 2009 after living in another home for over nine years. Are we entitled to the $6,500 long-term homeowner program? Thanks for your time.
A: I’m sorry, but you do not qualify. The move-up tax credit is only available to those who purchased their homes after November 6, 2009 through June 30, 2010. Because you bought your home a year ago, you would not fall into the appropriate date range.
Unfortunately, the move-up home buyer tax credit contains strict time limits as well as other restrictions. For those who don’t fall within these strict parameters, you’re out of luck. That’s because the move-up home buyer tax credit was intended to stimulate demand for homes and Congress didn’t want to give the tax break to people who had already purchased homes. Whether the tax break actually increases the number of move up buyers hasn’t yet been determined. Some of those buyers would have purchased a home anyway, while others may only be buying to take advantage of the tax break.
Although the IRS tax code doesn’t require that you sell your existing home in order to qualify for the $6,500 long-term homeowner tax credit, many homeowners who wish to trade up might need to get cash from the sale of the property.
Home buyers wondering whether they qualify for a tax credit might want to spend some time on HomeBuyerTaxCredit.com. It provides an interactive short series of questions to help figure out if you qualify for either the $8,000 first-time home buyer tax or the $6,500 long-term homeowner tax credit.
One last issue, if your adjusted gross income is $125,000 or more and you are single or $225,000, and married, the tax credit phases out and disappears entirely. So even if you fell within the time guidelines, there are other restrictions to the tax credit for both repeat home buyers and first time home buyers.