One of the overlooked aspects of the recent home buyer’s tax credits approved by Congress is the credit that is available for the “move-up” or repeat home buyer. Many people are aware of the up to $8,000 tax credit for first-time home buyers, but there has not been a real concerted effort to let people know about the up to $6,500 tax credit available to buyers who sold their previous home and are “moving up.”
The law defines a tax credit-qualified move-up home buyer (“long-time resident”) as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase of the move-up home. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
The homeowners who fall in to this move-up category, would have purchased their homes in 2002 or prior, which means they bought their homes prior to the real estate madness of 2005 to 2007 and probably made some money, or at least didn’t lose money. For those who fall into this category, you have until April 30, 2010 to take advantage of this one-time tax credit. If you have lived in your current home for five of the last eight years, and are interested in moving up, time is running out to sell your home and make the move-up purchase.
Find out more about the Move-Up/Repeat Home Buyer Tax Credit
Lyle Plocher is a licensed Real Estate Broker with the Urban Connection Realty team at HomeSmart. Lyle can be reached at firstname.lastname@example.org.