When I first heard about the repeat buyer tax credit, my response was "hooray, I'm moving". I was wrong. It turns out, I'm not elligible. Here are the basic facts about the tax credit:
1. You need to have lived in your home for 5 of the last 8 years as your primary residence.
2. If you are married, both spouses need to have lived in the home for 5 of the last 8 years.
3. After receiving the tax credit, you must live in your new home for 3 years. If you do not, the credit is re-captured (you will have to pay it back). It is not pro-rated. If you move one day less than 3 years, you must pay it back.
4. The credit is for the purchase of a home with a sale price of less than $800,000.
5. There is an income limit of $125,000 for a single person or $225,000 for a married couple. With a higher income, you may be eligible for a partial credit.
6. There are exceptions for uniformed military and members of the intellligence community. They can take up to a year later to close depending on their circumstances and do not have to pay back the recapture if they move early due to being on active duty more than 50 miles from their home for 90 days or more.
7. You must have a home under contract by April 30, 2010 and close by June 30, 2010.
8. If you have a house built you need to close and move in by June 30, 2010.
9. The credit is 10% of the purchase price up to $6500.
10. The credit can be used for a single family home, condo, manufactured home, or house boat.
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