New tax credit may be worth pouncing on

The Nation's Housing

New tax credit may be worth pouncing on

Today's issue of The Washington Post in the Real Estate section

By Kenneth R. Harney   November 14, 2009

"Take a close, hard look at the new $6,500 federal tax credit for "move up" home buyers that passed the Senate and House last week. Though it's been getting second billing to the original $8,000 credit for first-time purchasers -- now extended by Congress through June 30 -- the $6,500 credit for current homeowners just might have your name on it.

How does it work? When will it be available?

First things first: The new credit is available now. It took effect Nov. 6, the day President Obama signed the legislation. This means that if you fit the key criteria -- you've owned and resided in your current home for a consecutive five out of the past eight years, and your adjusted household income doesn't exceed $125,000 if you file taxes singly, $225,000 if you are married filing jointly -- you can claim the credit as soon as you close on a qualifying home."

http://www.washingtonpost.com/wp-dyn/content/article/2009/11/12/AR2009111211347.html

"That could be next week, next month or next spring. There is no actual move-up requirement in the new credit. In fact, homeowners who plan to downsize may prove to be significant users of the credit, along with people who are relocating because of employment changes.

If you fit the criteria and are considering buying another home sometime in the coming year, you might want to speed up the process and sign a contract by April 30 and close by the June 30 expiration date. Think of it this way: If the government is willing to give you $6,500 to act a little faster than you had originally planned, hey, why not?"

MANY HOME OWNERS THAT WERE NOT PLANNING TO PURCHASE ANOTHER RESIDENCE WILL NOW BE THINKING ABOUT A PURCHASE THIS WINTER. IDEAL TIMING FOR MOVING UP TO A NICER HOME OR DOWNSIZING TO A RETIREMENT HOME.

HOME OWERS THAT QUALIFY FOR THE $6,500 TAX CREDIT SHOULD CONTACT THEIR REAL ESTATE AGENTS TO CONSIDER THE AVAILABLE OPTIONS.