I have been receiving more emails and questions regarding the newly expanded homebuyer tax credit, so I wanted to address them and share links to documents from the IRS and the National Association of REALTORS (R) to help hopefully address those questions.
1) Do you need to SELL your current home that you have lived in for five consecutive years out of the last 8?
Who Qualifies for the Extended Credit?
- First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.
2) If you SOLD the qualifying home PRIOR to November 6, 2009, but it & you qualify in every other way for you to receive the tax credit on the home you are going to buy prior to April 30, 2010, would you be eligible for the $6500 credit?
According to the National Association of REALTORS (S) explanation, YES.
3) Is there any way I would have to repay this tax credit?
YES. If in the first three years of owning this home you purchased using the credit, you sell the home or go into foreclosure, or you buy another primary residence and rent this one out, you would have to REPAY this CREDIT. (See IRS homebuyer credit slideshow page 11).
I hope this helps to answer some of the outstanding questions that have been out there. I would like to thank Joseph “Jody” T. Landers, Executive Director of the Greater Baltimore Board of REALTORS (R) for the IRS link and information.