Tax Credit for Current Homeowners

Reblogger Heather Burns
Mortgage and Lending with Guild Mortgage Company

Great Post From Sandy Noll!

Original content by Sandy Noll

Yesterday when talking with a new buyer client who is selling his home to purchase a new home, I mentioned to him that he now qualifies for the extended and enhanced tax credit of $6500.  He had no idea what I was talking about!  Yes it is true, if you currently own a home that you sell to purchase another, you can receive up to a $6500 tax credit!

All of the the guidelines to qualify for the tax credits are explained at but here are the specifics for current homeowners:

"For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived  in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased."

Also included in the tax credit extension were income limit increases:

"People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009."

So if you have owned your home for 5 of the past 8 years and want your share of the tax credit, call your Realtor today, to get your current home sold so you can purchase a new home before this extension expires.  It's doubtful there will be another extension made by the White House.

Sandy Noll
Keller Williams Realty Kirkland
Kirkland, Woodinville and the Greater Eastside