All You Move-up Buyers

January 7, 2010

If you are thinking that this is the year that you would like to make a move and you have heard that the federal government is offering a $6500. Here are the rules as I understand them to take advantage of this tax credit.

1. You do not have to sell your current home which you must have owned and used as a principal residence for at least five consecutive years of the eight year period ending on the date of purchase of the new home as a primary residence.

2. You do not have to purchase a home that is more expensive than your current home, but the new home cannot cost more than $800,000.

3. For single taxpayers the income limit is $125,000 annually. For married folks filing jointly, your income cannot be more than $225,000

4. You cannot purchase the new home from family members, which includes parents, grandparents and children.

4. The purchase must take place by April 30, 2010. If you have entered into a binding contract before that date, you must close by June 30, 1010.

I believe that these are the basic rules. If they fit your situation, call your agent and find your next residence.